House won't okay use of budget to cover jet deal
House won't okay use of budget to cover jet deal
Adianto P. Simamora, The Jakarta Post, Jakarta
The House of Representatives will not approve the use of the
state budget to reimburse the State Logistics Company (Bulog) for
the US$26 million down payment for Russian-made jet fighters and
helicopters, unless the budget is revised, a top legislator said
on Thursday.
Abdullah Zainie, chairman of the Houses' budget committee,
said that since the purchase of the jet fighters and helicopters
was not included in the current budget, any use of the state
budget to cover payments for the military equipment would require
a revisions.
"The government must first propose a revision to the 2003
state budget for the House to meet Bulog's demand," said
Abdullah.
Normally, the budget is revised in September.
Bulog recently asked the Ministry of Finance to reimburse it
for the $26 million down payment it made for the purchase of two
Sukhoi jet fighters and two Mi-35 helicopters.
The purchase was part of a $192 million countertrade deal
signed by the Indonesian and Russian governments during President
Megawati Soekarnoputri's visit to the country last April.
Russia will receive some 30 commodities and manufacturing
products of equal value from Indonesia in return for the military
equipment. The commodities including crude palm oil (CPO),
textiles, coffee, rubber, chocolate, black pepper, electrical
appliances and fishery products.
Minister of Industry and Trade Rini MS. Soewandi assigned
Bulog to implement the countertrade deal with Russia. Bulog is
now under the Office of the State Minister for State Enterprises.
Bulog paid the $26 million down payment to Russian state
company Rosoboronoexport, after borrowing the money from state-
owned Bank Bukopin with commercial interest.
The Ministry of Finance has refused to reimburse Bulog for the
down payment, saying the ministry knew nothing about the
transaction.
Anshari Lubis, director general for budgetary affairs at the
Ministry of Finance, said on Wednesday neither Bulog nor the
Ministry of Industry and Trade had invited his office to discuss
the purchase of the aircraft.
It was reported that Minister of Finance Boediono had sent a
letter to the House, asking about the possibility of using the
state budget's "emergency fund" to reimburse Bulog.
Separately, economist Faisal Basri urged the government
publicly to explain the whole process leading to the countertrade
deal and the appointment of Bulog as the executor of the deal.
"The process of the purchase really went against budgetary
guideline. The government must clarify this matter to the public
so everyone knows the truth.
"Although I don't have any concrete data, I dare say that the
deal has a hidden scandal," Faisal said.
Also, the Institute for the Development of Economics and
Finance criticized Rini for the controversial countertrade deal.
In a statement, the institute said the deal not only violated
existing regulations but also caused difficulties for various
parties, including Bukopin and Bulog.
Adianto P. Simamora, The Jakarta Post, Jakarta
The House of Representatives will not approve the use of the
state budget to reimburse the State Logistics Company (Bulog) for
the US$26 million down payment for Russian-made jet fighters and
helicopters, unless the budget is revised, a top legislator said
on Thursday.
Abdullah Zainie, chairman of the Houses' budget committee,
said that since the purchase of the jet fighters and helicopters
was not included in the current budget, any use of the state
budget to cover payments for the military equipment would require
a revisions.
"The government must first propose a revision to the 2003
state budget for the House to meet Bulog's demand," said
Abdullah.
Normally, the budget is revised in September.
Bulog recently asked the Ministry of Finance to reimburse it
for the $26 million down payment it made for the purchase of two
Sukhoi jet fighters and two Mi-35 helicopters.
The purchase was part of a $192 million countertrade deal
signed by the Indonesian and Russian governments during President
Megawati Soekarnoputri's visit to the country last April.
Russia will receive some 30 commodities and manufacturing
products of equal value from Indonesia in return for the military
equipment. The commodities including crude palm oil (CPO),
textiles, coffee, rubber, chocolate, black pepper, electrical
appliances and fishery products.
Minister of Industry and Trade Rini MS. Soewandi assigned
Bulog to implement the countertrade deal with Russia. Bulog is
now under the Office of the State Minister for State Enterprises.
Bulog paid the $26 million down payment to Russian state
company Rosoboronoexport, after borrowing the money from state-
owned Bank Bukopin with commercial interest.
The Ministry of Finance has refused to reimburse Bulog for the
down payment, saying the ministry knew nothing about the
transaction.
Anshari Lubis, director general for budgetary affairs at the
Ministry of Finance, said on Wednesday neither Bulog nor the
Ministry of Industry and Trade had invited his office to discuss
the purchase of the aircraft.
It was reported that Minister of Finance Boediono had sent a
letter to the House, asking about the possibility of using the
state budget's "emergency fund" to reimburse Bulog.
Separately, economist Faisal Basri urged the government
publicly to explain the whole process leading to the countertrade
deal and the appointment of Bulog as the executor of the deal.
"The process of the purchase really went against budgetary
guideline. The government must clarify this matter to the public
so everyone knows the truth.
"Although I don't have any concrete data, I dare say that the
deal has a hidden scandal," Faisal said.
Also, the Institute for the Development of Economics and
Finance criticized Rini for the controversial countertrade deal.
In a statement, the institute said the deal not only violated
existing regulations but also caused difficulties for various
parties, including Bukopin and Bulog.