Rp 9.3t budget approved, officials investigated

Ahmad Junaidi, The Jakarta Post, Jakarta

The City Council finally approved the 2002 City Budget worth a total of Rp 9.3 trillion (US$903 million) on Thursday, but two officials have ended up being investigated for alleged collusion over funding allocations in the budget.

The budget is larger than the originally proposed Rp 8.9 trillion thanks to a rise in city revenues, especially from taxes. Last year's budget was worth a total of Rp 8.3 trillion.

Some Rp 5.7 trillion of the current budget will be spent on routine expenditure while the remaining Rp 3.62 billion will go on capital expenditure.

The increase of about Rp 400 billion in the size of the budget over the original proposal prompted a number of city officials to suggest additional projects.

Among these officials were the head of the Jakarta Industry Agency, Sjahrial, and the head of the Jakarta Tourism Agency, Robert Silalahi, who suggested several additional projects during a two-day meeting last month in the city-owned Wisma Jaya Raya resort in Puncak, Bogor.

The projects were approved by the council's Commission B for Development Affairs. The approvals were signed by Commission B chairman Syarief Zulkarnaen and the agency chiefs.

The councillors and the officials' signatures boosted suspicions of possible collusion among them as what had occurred was unusual during budget hearings.

But Syarief, of the United Development Party, rejected the allegations of collusion in the projects, saying the council considered that the projects should be prioritized.

"It's not the first time we have changed funding allocations under the budget. We think these projects are important," he said.

Both Sjahrial and Robert came under investigation last week for proposing the projects without consulting Governor Sutiyoso or city secretary Fauzi Bowo.

"If we find any irregularities, we will replace them," Sutiyoso told reporters on the sidelines of the council's plenary meeting.

Fauzi expressed regret that the two officials had proposed the projects without first undertaking consultation, saying he would review the projects.

"We will not disburse the funds if we find they are not on the priority list."

The Jakarta Industry Agency proposed an increase in the funding for its projects to bring its allocation up to a total of Rp 16.5 billion compared to its earlier proposal of Rp 10 billion. Meanwhile, the Jakarta Tourism Agency requested an increase of Rp 7 billion over its original proposal of Rp 5 billion, bringing its total allocation to Rp 12 billion.

Despite giving its approval to the budget, the Indonesian Democratic Party of Struggle urged the administration to be careful in spending public money.

"The budget increases must not all be spent. We should also think of tomorrow," party spokesman Agung Iman Santoso said.