Indonesian Political, Business & Finance News

'House must control govt budget'

| Source: JP

'House must control govt budget'

Tony Hotland, The Jakarta Post, Jakarta

Amid the current weak condition of state finances, it is the
House of Representatives that ought to be playing the crucial
role in making sure that all government spending plans are
proportional, legislators have said.

Aside from enacting laws and monitoring the government, the
House also has power over disbursement of state funds.

This role needs to be urgently filled as the government is
struggling to cover higher expenditures due to rocketing fuel
subsidies and health service costs, while allocating little to
education and poverty eradication programs.

The nation's weak financial condition also became a stumbling
block for recently proposed increases in allowances for House
members.

Such a role has become essential, they said, most importantly
to minimize corruption and ineffective spending in all government
ministries and institutions.

"Rather than solving the problems later on after corruption
has taken place, it's better to prevent it. All funds for the
government must go through deliberation with the House first, and
this is where we must come in comprehensively," said legislator
Suryama M. Sastra.

Ministries have to consult with House commissions about their
proposed budgets before seeking approval from the House budgetary
committee. All these discussions, however, are closed to the
public.

On many occasions, ministries do not detail items in their
proposals, leaving the execution of programs prone to abuse in
the forms of different or overlapping allocations, as well as
corruption.

"It's called the devil in the detail, and House commissions
are also part of this problem. All House members must use their
rights to request details from their executive partners," said
Suryama, who sits on the House domestic affairs body.

This was where the provision of expert staff for House members
became crucial because most of them have little knowledge of
accounting and budget formulation, he said.

"We have some 200 advisory employees here to assist all 11
House commissions, 10 factions, working committees and House
leadership. Is it adequate? We're not even sure about their
qualifications," said Suryama.

Regarding closed-door sessions, he said they should be open to
public most of the time if the House wished to show its goodwill
in allowing public participation.

Similar comments were also raised by House budgetary committee
deputy Bursah Zarnubi, who said that many procurements by
government institutions could actually be downsized and made more
efficient.

"I did a little research and found that mark-ups -- up to
eight times -- and inefficiency are common. Procedures for
procuring goods are complicated to allow ministries to directly
appoint firms. Sometimes, they process it too late so they have
to pay extra money because of the immediate need," said Bursah.

"Another example, I just found out that the House secretariat
general rents a pot of flowers for Rp 30,000 (some US$3) every
month. How ridiculous is that?" he said.

Bursah said the government needed to issue a regulation to
ensure efficiency if it wanted to pursue a sound and efficient
budget.

Vocal legislator Djoko Susilo said the government, as well as
House members, should be able to slash many expenses.

"Why not fly economy class? Why not minimize entourages during
trips? Why not stay in less expensive hotels? Why not take back
unnecessary representatives abroad, which cost us billions of
rupiah monthly?" he argued.

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