Thu, 02 Jun 2005

Ministry seeks extra money for infrastructure

Rendi A. Witular, The Jakarta Post, Jakarta

The Ministry of Public Works proposed additional funding on Wednesday amounting to Rp 5.07 trillion (US$539 million), mostly to be used for developing public infrastructure in cities and villages around the country.

In a hearing with the House of Representatives' Commission V for infrastructure, telecommunications and transportation, the ministry's secretary-general, Roestam Sjarief, said the additional money was also needed for the reconstruction of tsunami-affected Aceh.

Roestam said that some Rp 1.53 trillion would be allocated for Aceh's reconstruction, while the remaining Rp 3.54 trillion would be used for the construction of the infrastructure needed to support economic growth, such as roads, bridges and irrigation works.

"The ministry needs extra funding to help tsunami-stricken areas as well as underdeveloped cities and villages throughout the country. We need to empower these areas so that they can improve their economies," said Roestam during the hearing.

The extra funds for Aceh are included in the Rp 45 trillion in reconstruction funds the government has pledged for the tsunami- affected areas.

Based on the state budget, the Ministry of Public Works is expected to receive some Rp 13 trillion, with the lion's share of the funds to be used to improve existing roads as well as construct new ones.

According to the ministry, some 19 percent of the country's total of 34,628 kilometers of roads are in bad condition and 81 percent are good condition.

The total length of the roads, however, is still insufficient to help support economic growth.

Given the current situation, Indonesia is facing a grave threat of massive congestion in the distribution networks in many parts of the country that could derail the government's target of achieving economic growth of more than 6.6 percent annually within the next four years.

Roestam said that out of the extra money, the ministry would allocate Rp 515 billion for road maintenance along the northern and southern corridors in Java, as well as the eastern corridor in Sumatra. The money would be added to the existing allocation of Rp 4.5 trillion set aside for road maintenance and construction, excluding toll roads.

Roestam added that the ministry would also allocate some Rp 170 billion for further work on the Suramadu bridge, which is expected to cost some $177 million and will link Surabaya city in East Java to underdeveloped Madura island.

Another Rp 2.6 trillion will be spent on improving irrigation networks around the country.

According to the Ministry of Agriculture, some 40 percent of the country's irrigation facilities are in dire need of repair due to poor maintenance as a result of a lack of money.