'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)