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)