Govt to allocate Rp 4.01t for regions

The Jakarta Post, Jakarta

The Ministry of Finance announced on Friday the central government would allocate as much as Rp 4.01 trillion (US$441.63 million) next year to help regional governments finance economic and social programs.

The government allocated Rp 3.1 trillion in the current 2004 state budget for the same purpose.

The ministry said in a press statement the funds would be used to help regions finance programs in the areas of education, health, infrastructure, agriculture, fisheries and maritime affairs, as well as providing facilities for administrative work.

It said the education sector would receive Rp 1.22 trillion, health Rp 620 billion, infrastructure Rp 1.53 billion, fisheries and maritime affairs Rp 322 billion and agriculture Rp 170 billion, with Rp 148 billion being allocated to provide administrative facilities.

The central government has been providing these special allocation funds to help finance regional programs since the implementation of regional autonomy.

The ministry, however, said the funds should be directed primarily to poor regions with limited fiscal ability to finance key economic and social programs.

Provinces like Papua, Aceh and Maluku, as well as remote areas and areas prone to landslides or floods, will be the priority, it said.

The ministry said projects funded by the special allocation funds must start by 2005, and certain expenses such as those for research, training and administration must be financed by the regions.