House OKs law on economic planning
House OKs law on economic planning
Dadan Wijaksana, The Jakarta Post/Jakarta
A law on national development planning was endorsed at a plenary
session of the House of Representatives on Tuesday, outlining the
role of the National Development Planning Agency (Bappenas) in
formulating the nation's economic development programs.
Under the law, a draft of which was initiated by the House
Commission IX on financial affairs, Bappenas will have an active
role in drawing up the economic development planning for one,
five and 10-year periods.
State Minister for Development Planning and Bappenas chairman
Kwik Kian Gie told legislators the law was crucial as the State
Policy Guidelines (locally known as GBHN) made no mention of
Bappenas' role and the wider authority of regional governments
under the Regional Autonomy Law.
The new law would allow Bappenas to formulate guidelines for
the president before the government set out its economic agenda.
The range of powers gained by the regions under regional
autonomy meant there was a need for tighter coordination and
regulations to harmonize development programs -- be it on a
national, regional, or inter-regional level, Kwik said.
The one-year economic plan will now be the main guide to the
creation of the annual state budget, dissipating concerns that
Bappenas would no longer have a say in the budget following the
enactment of the State Finance Law last year.
The law had created uncertainty over the fate of the once-
powerful Bappenas, as it gives the Ministry of Finance almost
total control over the drafting of the annual budget.
The national development planning law obliges Bappenas to
actively participate in the drawing up of macroeconomic targets,
yearly state budget figures, the five-yearly national development
program (to replace the abolished "Propenas" program usually
written by Bappenas), and the 20-year program -- the country's
long-term economic road map.
Regulations to coordinate Bappenas and Ministry of Finance in
these tasks would soon be issued, so as to avoid overlap or
confusion in implementation.
Established more than 40 years ago, Bappenas during the
administration of president Soeharto was extremely powerful, with
all key development projects having to pass through the office
for approval.