Indonesian Political, Business & Finance News

Legislator warns of election fund abuses

| Source: JP

Legislator warns of election fund abuses

JAKARTA (JP): A legislator warned the government yesterday not
to use general election funds for buying sprees, citing previous
evidence of financial abuse.

Member of the House of Representatives' state budget
commission Soelaiman Biyahimo called for tighter control over all
expenditures as funds, paid from three successive annual state
budgets since 1995/1996 fiscal year, had come from the public.

Minister of Finance Mar'ie Muhammad told a hearing with the
commission on Monday the May 29 election budget was set at Rp
214.5 billion (US$90 million).

Personnel expenditure would amount to Rp 94.5 billion,
purchase of goods Rp 45.3 billion and operational costs Rp 74.7
billion.

The election fund this year is a clear Rp 15.5 billion
increase on five years ago.

Soelaiman said previous elections had shown all budgetary
posts were prone to financial abuses and the mark-up of market
prices, including those for paper supply, storage of printed
materials and delivery expenses.

"We have to keep an eye on those who want to tap funds for
personal interest," Soelaiman said.

The May 29 election will be the sixth under the New Order and
the seventh since independence 52 years ago.

During Monday's session, Mar'ie told the House preparation
costs of Rp 75.1 billion had been covered in the 1995/1996
budget. Implementation of the election, costing Rp 128.7 billion,
had been earmarked in the current budget year which would end on
March 31. The administrative completion of the election process
would cost Rp 10.7 billion, to be funded from next year's budget.

The funds exclude financial aids distributed to the three
political groupings contesting the election. The ruling Golkar,
the United Development Party (PPP) and the Indonesian Democracy
Party will be vying for 425 House seats.

Soelaiman said each party would need at least Rp 1 billion for
the election due to the new election rules.

The rules, designed by the National Security and Defense
Council (Wanhankamnas), oblige the three parties to campaign in
pre-designated areas, sometimes in two far-distant towns on the
same day to avoid a face-to-face meeting of opposing supporters.

Nearly 125 million people have qualified for the polling day
next May.

The government granted each election contestant Rp 250 million
in 1992. Soelaiman said the amount was smaller than financial aid
given by certain provinces like East Java and Jakarta which
provided up to Rp 700 million.

Soelaiman's fellow commission member of PDI faction, Ni Gusti
Ayu Sukma Dewi, said the government had not paid enough attention
to political parties despite the country's impressive record in
economic development.

The 1973/1974 state budget allocated a Rp 5 million monthly
subsidy for each political grouping. The subsidy was only
increased by Rp 2.5 million after 23 years, even as Indonesia's
gross national product soared to $1,000 per capita. (amd)

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