Jakarta budget up by 9% next year

Ahmad Junaidi, The Jakarta Post, Jakarta

The city administration announced on Monday that its budget for next year would increase by about 9 percent to Rp 10.6 trillion (US$11.8 billion), and promised free tuition for junior high school students.

"Next year's budget will increase by 9 percent, from the current Rp 9.7 trillion, to Rp 10.6 trillion," said administrative assistant to the city secretary Makmun Amin.

Speaking after discussing the budget with Jakarta Governor Sutiyoso at City Hall, he said that the city's tax income next year would reach Rp 4.6 trillion and the general allocation of funds from the central government Rp 4 trillion, while some Rp 2 trillion would be left over from this year's budget.

According to him, the city's tax income of 4.6 trillion was mostly secured from the vehicle, land and property, and entertainment taxes. Last year's tax income was only Rp 4 trillion.

He said this year the central government was expected to hand over Rp 4 trillion, known as the general allocation fund (DAU).

Some Rp 2 trillion of this year's budget that was not used would be included in next year's, Makmun said.

Some projects, planned to be financed by the 2002 budget, were postponed due to a lack of preparation, including the controversial busway project, valued at Rp 54 billion.

Another project also postponed was the development of several public parks, worth Rp 250 billion, halted due to the high cost of land acquisition.

The city also cannot carry out this year land acquisition for the East Flood Canal project, estimated at Rp 50 billion.

The planned 2003 budget is scheduled to be submitted to the City Council next month for approval. Usually, the budget is approved in January after being discussed with the council.

Makmun said that they would use new terms in the next budget. "We will separate funds for the public from those for capital items," he said.

Makmun claimed that of the Rp 10.6 trillion budget 70 percent would be used for public expenditure, with the remaining 30 percent on routine expenditure.

Of this year's Rp 9.7 trillion budget 40 percent was on routine expenditure, while 60 percent was for development spending.

Separately, councillor Dani Anwar of the Justice Party took the view that there were no changes, apart from terminology, in spending for next year's budget.

"Some spending that was allocated to routine expenditure will now be included in public spending, so there are no changes in the budget," said Dani, who is also a member of council commission B for economic affairs.

Meanwhile, head of the City Development Planning Office Ritola Tasmaya said the city administration planned to exempt junior high school students from paying tuition fees.

Ritola said the administration would allocate Rp 195 billion to cover tuition fees for students of state elementary and junior high schools.

"However, we are still considering whether we should exempt all students from paying tuition fees or just those from poor families," he said after the meeting.

He explained that each elementary school student would receive a subsidy of Rp 15,000 a year, or a total of Rp 115 billion, while students of junior high schools would receive a Rp 25,000 subsidy per year for tuition fees, or a total of Rp 115 billion.

The city administration has freed students of state elementary schools from paying tuition fees. But the fees, which amounted to no more than Rp 2,000 per month do not really burden students, as many of them complained about the education donation (BP3) which was applied differently by each school. Each student is required to pay Rp 10,000 to Rp 20,000 per month to BP3.