Indonesian Political, Business & Finance News

Home Affairs Ministry to supervise regional budget

| Source: JP

Home Affairs Ministry to supervise regional budget

The Jakarta Post, Jakarta

The Ministry of Home Affairs will oversee the use of regional
budget, taking over the supervisory role from regional
legislatures (DPRDs).

In the planned revision of law No.22/1999 on the fiscal
balance the central government will tightly supervise the use of
regional budget.

According to law No. 22/1999, known also as autonomy law,
regional administrations and legislatures have the authority to
draft regional budgets.

"Most of the funds come from Jakarta, so it is the obligation
of the central government to ensure the use of the fund,"
Minister of Home Affairs Hari Sabarno said on Friday.

He said local legislature members would share the duties to
plan the budget with regional administrations, but his ministry
would also be involved in the discussion.

"We will not let the regions use the fund without clear
objectives and purposes as the regional autonomy is aimed to
improve the people's welfare," Hari said.

Another point that will be revised in the autonomy law is the
reinstatement of governor's authority to deal with problems in
the region.

"However, the discussion on governor's authority is not yet
finalized, but we will strengthen their position," the minister
added.

The regional autonomy was introduced in 2000, during the
tenure of former president Abdurrahman Wahid, but calls for
revision of autonomy laws came almost immediately after the
regional autonomy came into effect.

President Megawati Soekarnoputri has on several occasions
demanded for revisions of the law, arguing that the autonomy has
gone too far, as it provides excessive power to regional
administrations.

Megawati said that regional autonomy should not turn regional
leaders into "little kings" and there should be strict rules to
ensure people's welfare in the autonomous era.

The government has been discussing the revision of the
autonomy laws in the past two years and plans to complete the
revision before the election of new president later this year.

Hari said there will be two or three cabinet meetings more
before the government could finalize the revision and propose it
to the House of Representative.

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