Indonesian Political, Business & Finance News

Minister faces a bumpy road

| Source: JP

Minister faces a bumpy road

JAKARTA (JP): Minister of Public Works Rachmadi Bambang said
on Saturday his ministry was facing mounting complaints about the
worsening condition of the country's 292,586 kilometers of roads.

Rachmadi said, however, his ministry would not be able to
repair the majority of the roads because the ministry's budget
for the 1999/2000 fiscal year was only about 58 percent of its
budget before the economic crisis hit the country in 1997.

"I do not mean to complain, but the situation is becoming more
difficult and our burdens are becoming bigger, but our capability
is becoming more limited," the minister said.

Rachmadi said 3,500 kilometers of the 23,270 kilometers of
roads constructed by the central government were severely
damaged.

He also said 51 percent of the 38,650 kilometers of provincial
roads could not be repaired due to lack of funds and 58 percent
of the 227,083 kilometers of regency roads needed major repairs.

Last year the ministry was only able to repair 1,067
kilometers of government-constructed roads, 3,125 kilometers of
provincial roads and 7,972 kilometers of regency roads.

Rachmadi said corruption, which he described as a moral
hazard, and negligence contributed to the poor condition of the
roads.

Citing data from his ministry, he said the government had
allocated Rp 2.8 trillion for road construction and maintenance
in the current fiscal year, including Rp 2.71 trillion for
government-constructed roads. He added that the real value of
these funds had dropped by more than 60 percent compared to two
years ago.

"We are among the biggest spenders among the ministries. It is
true that we only receive a small portion of direct revenue from
the state, but our mission is to build infrastructure," he said.

He also said toll roads faced gloomy prospects because the
government was forced to halt 97 of 107 planned toll road
projects due to inefficiency, corruption, collusion and nepotism.

In an earlier written statement, Rachmadi said the government
could save at least Rp 43 trillion by canceling the projects.
However, he later retracted this statement.

"That statement can be misleading because the projects only
reached the phase of a memorandum of understanding," he said.

Apart from the poor condition of roads, the ministry is also
facing difficulty providing tap water service to the country
because only 50 of the 307 regional water companies are able to
operate at full capacity, Rachmadi said.

"Ninety of the companies are in critical condition, while 160
firms cannot cover their operational costs," he said.(prb)

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