'Improve budgetary discipline'

'Improve budgetary discipline'

JAKARTA (JP): President Soeharto yesterday instructed
ministers and other heads of government institutions to improve
budgetary discipline and financial administration to make state
spending more effective and to avoid confusion among the public.

"Again, the President reminded all the heads of ministries and
other government institutions to avoid using the funds of state-
owned companies and any other agencies to finance routine
activities or development projects under their supervision,"
Minister of Information Harmoko told a press conference after a
two-hour plenary cabinet meeting at the State Secretariat here.

The meeting, presided over by Soeharto and attended by Vice
President Try Sutrisno as well as cabinet members and first
echelon officials, discussed a proposal on the government's
budget for 1996-1997, which will be delivered to the House of
Representatives on Jan. 4. Yesterday's meeting was also attended
by Chairman of the Supreme Advisory Agency Sudomo, Chief of the
Supreme Audit Board J.B. Sumarlin and Chief Justice Soerjono.

"The expansion of development activities at ministries and
other government institutions must be accompanied by improvements
in internal supervision," Harmoko quoted Soeharto as saying.
"Both the supervisors and the supervised parties must uphold the
goals and procedures of supervision, so that all the work can be
conducted smoothly and cleanly."

President Soeharto, as quoted by Minister/State Secretary
Moerdiono earlier this week, asked Minister of Transportation
Haryanto Dhanutirto to be "introspective" and to improve the
handling of administrative and financial procedures at his
ministry as well as at the state-owned companies under his
supervision after an investigation found out that there were
administrative errors, mistakes and improprieties at the
ministry. However, Haryanto was cleared of any embezzlement
charges because he had reimbursed the money from state-owned
enterprises that he had used to pay his family's trips.

Harmoko said yesterday President Soeharto reiterated his
advice that the Government Audit Agency (BPKP) and inspector
generals intensify their supervisory jobs and that all ministers
and other heads of government institutions take action if there
are any irregularities or any corruption in their organizations.

"Supervision must also be improved on projects and activities
directly related to public services, such as licensing for
businesses, land usage, building construction and contracts,"
Soeharto said.

The President also emphasized that all ministries and other
government institutions must improve the efficiency of spending
for development projects and "must not mark up the costs
improperly."

Civil servants must work professionally in serving the public,
he added.

He said that buildings, infrastructures and production
facilities which have been built should be well maintained, so
that they can operate at their maximum capacity.

Harmoko refused to specify how much the government will
increase its budget for the next fiscal year, which will begin in
April.

The government's budget for this fiscal year is projected to
balance at Rp 78.02 trillion (US$33.8 billion), of which Rp 66.26
trillion will be generated domestically from taxes and other
sources and the remaining Rp 11.75 trillion from foreign aid.

According to the government's Sixth Five Year Development Plan
(Repelita VI), its budget should increase to a balance of Rp
86.36 trillion in 1996-1997.

However, the Golkar ruling party projected last month that the
government would likely increase its budget to Rp 91 trillion in
1996-1997, while the Moslem-dominated United Development Party
estimated it to balance at Rp 89.5 trillion.

Harmoko said that President Soeharto also said yesterday that
Indonesia's economy is likely to have grown by 7.1 percent this
year.

According to the Central Bureau of Statistics, the country's
economy grew by 7.34 percent in 1995.

"To maintain the high growth of the economy in the coming
years, the government should further improve its macro-economic
policies, which will encourage private sector companies to
improve creativity in doing business," Harmoko quoted Soeharto as
saying.

Harmoko said the President, therefore, wants all deregulatory
measures, which have thus far been introduced to lower costs, to
be implemented consistently. "The President warned all ministers,
heads of other government institutions, governors, regents and
mayors not to issue new regulations which will be contradictory
to the deregulatory measures," the minister said.(riz)