PDI reluctantly approves budget

PDI reluctantly approves budget

JAKARTA (JP): Members of Indonesian Democratic Party's (PDI) faction in the House of Representatives yesterday agreed to accept the 1996/97 state budget plan proposed by the government despite finding fundamental flaws in it.

The decision was made after a protracted and heated debate held behind closed doors. It means that the House will pass the government's budget bill without significant changes on Thursday.

The other factions, the ruling Golkar organization, the Moslem-based United Development Party and the Armed Forces have already decided to support the government's spending plans.

PDI hard-liners spearheaded by Aberson Marle Sihaloho initially insisted that the minority PDI should abide by the demands of many party supporters and reject the bill.

But they were outnumbered by conservatives like Fatimah Achmad and Budi Hardjono, who argued that rejecting the plan would bring severe political consequences which the party cannot currently cope with.

"We are politically disadvantaged at the moment so cannot turn the bill down," Budi Hardjono said after the meeting.

Aberson's camp, which includes outspoken legislators Sophan Sophiaan, Marwan Adam and Sabam Sirait, spent the rest of the day criticizing legislators in the other camp.

They were outraged by their rivals' claim that PDI chairperson Megawati Soekarnoputri -- who was abroad -- had ordered the faction to accept the budget plan.

"My heart is broken," said Sophan who slumped on his chair. "The PDI should have turned down the bill because accepting it would only worsen the party's image."

PDI has demanded the bill's projection of receipts from non- oil tax payments in 1996/97 be bolstered from Rp 56 trillion to Rp 63 trillion, because of the existing tax revenue potential.

It fears that the low target would not only make tax officials slothful but also encourage them to collude with people wanting to avoid taxes.

The party is also sticking to its long-standing belief that the government should break down the budget into specific programs, projects and activities to facilitate supervision.

PDI has been unsuccessful in its bid to strengthen the House's role in budget making by dictating the priorities for the budget allocation.

Marwan Adam said the government has often used money from the state coffers for activities which are not included in the state budget plan.

"We are well aware that there have been so many non-budgetary transactions which are not reported to the House," he said when presenting PDI's views on the budget plan before a House plenary meeting last week. "How can House members carry out their mission of supervision, if they have no access to such information?" he added.

The revenues and expenditures in the 1996/1997 budget plan are projected to balance at Rp 90.61 trillion (US$39.5 billion), 16 percent higher than the Rp 78.02 trillion budgeted in the current 1995/1996 fiscal year, which ends next month.

Aberson claimed that although he finally had to bow to the majority's will in yesterday's debate, "almost all" PDI legislators praised the basic ideas behind his insistence to reject the bill.

"I will insist on airing our reservations when the bill is passed Thursday," he said.

The Aberson camp hoped that if the PDI turned the bill down, the move would help improve its image as the "party of the ordinary people" and an anti-establishment political organization. (pan)