Soeharto unveils 1996-1997 draft state budget
Soeharto unveils 1996-1997 draft state budget
President Soeharto unveiled the annual state budget draft
yesterday before a plenary session of the House of
Representatives (DPR). The following is an unofficial, condensed
translation of the budget transcript.
JAKARTA: Our nation embarked on the year 1996 with the year
1995 that we have safely passed as an asset. Last year had a
special significance to our nation. It was a year full of
dynamism at home, in the region and the world.
In 1995, our national independence became half a century old.
We are gratified by all the blessings of our independence,
because we were able to consolidate the national unity and
cohesion with such a diverse society, to preserve our national
sovereignty of an extremely vast archipelago, to successfully
carry out development that brought about significant progress and
improved the people's well-being.
Despite the continued solid political stability, it was very
discernible, however, that the political dynamism was quite high.
The climate of openness, freedom and new ideas continued to
flourish. I have reminded that development progress breeds new
aspirations, new strengths and new hopes. What is important is
our awareness and ability to preserve together the situation from
going out of control. Any kind of dynamism is a positive sign in
order to continue to refresh our nation by subscribing constantly
to Pancasila, the 1945 Constitution, the Guidelines of State
Policy and ensuring stronger national unity and cohesion.
The regional developments are heartening. ASEAN becomes
increasingly solid and its membership has been enlarged. This
means providing a greater elbow-room for economic cooperation
with a view to improving the well-being of the peoples in this
region. Our relationship with neighboring countries in the
Southwestern Pacific also becomes increasingly closer. An
expanded cooperation within the framework of APEC opens new
opportunities. All of this creates a favorable atmosphere to our
development.
Developments on the global level are also moving towards peace
and economic cooperation. New hopes for peace emerge in the
Balkans and the Middle East.
Thus, Honorable Speaker, we have ended the year 1995, thank
God, by achieving an encouraging progress.
As I have presented in my address of State of Aug. 16 last
year, we have revised the growth target in the Sixth Five-Year
Development Plan (REPELITA VI), from an annual average of 6.2
percent to 7.1 percent. In 1994, this new target was surpassed,
because the economic growth reached 7.5 percent. Our economic
growth in 1995 will also be higher than the set target and we
predict it will be at least equal to 1994.
Such an adequately high economic growth was mainly attributed
to the growth in the non-oil/gas sector, including the industrial
sector. The agricultural sector is estimated to surpass by far
the growth rate of 1994. This means the standard of prosperity of
farmers is also improving.
The macro economic policy we have been pursuing over the last
few years has brought confidence is Indonesia's future economy.
One of its manifestations is the tremendous surge of approved
investments, both domestic and foreign, which will serve as the
basic of our economic growth in the years to come.
The evolution of the capital market in 1995 has also been
heartening which, at the same time, shows the trust of investors
in our economy.
However, this does not mean that our economic growth is not
without problems.
Among the three elements of the Trilogy of Development, the
element of growth and equitable distribution has shown a
remarkable result. However, the element of economic stability
encountered a difficult challenge. Unless we deal with it
properly, this challenge may develop into an economic upheaval
that will have a far-reaching impact on growth and equitable
distribution.
The challenge to Indonesia's economic stability today is an
overheating of the economy. There are two symptoms. The first,
for three conservative years the inflation rate has been far
above 5 percent, higher than the target set for REPELITA VI. In
fact, it has been even higher compared to the inflation rate of
our neighboring countries. The second symptom is the growing
current account deficit in 1995-1996, much higher than the
previous prediction. The growing current account deficit of the
balance of payments is caused by the increase rate of import
which was much higher than the increase rate of export. What we
have to be watchful of is the impact on the balance of payments
of foreign commercial loan, especially short-term, by the
business sector which has increased quite substantially in 1995.
We are a bit relieved, however, that our foreign exchange
reserves have also risen and are sufficient to sustain the
import need for five months.
For this reason, therefore, in 1996 we must exercise greater
control over the inflation rate. The government has initiated to
launch synchronized and harmonized policies in the fiscal and
monetary sectors, as well as in the real sector.
The current account deficit problem is a general symptom in a
dynamic economy which has a high growth potential. However, if
the current account deficit quickly becomes higher, it is
necessary to take appropriate measures immediately. One of the
essential keys to overcome the current account deficit is, on the
one hand, to boost the non-oil/gas export and, on the other hand,
reduce the growth rate of import. Based on this consideration, I
have combined the Ministry of Industry and the Ministry of Trade
into one ministry. Hopefully with these measures our effort to
increase export will have a better direction and coordination.
Our action in international market will be more agile and highly
responsive to global economic developments and capable of seizing
every opportunity.
With an open economy and the principle of a market economy,
indeed we cannot just prevent import. What we must do is to see
to it that import sustains export, creates the widest possible
employment opportunities and raises the highest possible value-
added.
In dealing with the overheating of the economy, it is
necessary to take a series of effective measures to cool the
economy down. These measures are mainly aimed at limiting the
liquidity expansion in the economy and banking credit, which have
of late grown too fast. In this connection, a number of measures
have been adopted in the monetary field, i.e. the increase of
bank reserves requirements, supervision over non-bank financial
institutions and the widening of intervention band. Steps have
been taken in the financial sector to expedite the repayment of
external debt by using the funds collected from the sale of
stocks of state-owned companies in the international capital
market.
The effort to expedite the repayment of external debt is
vitally important. Therefore, should there be a budget surplus by
the end of the fiscal year, it must be used to speed up the
repayment of external debt, especially for those with a high
interest rate.
Furthermore, to safeguard the balance of payments, the
borrowing of foreign commercial and export credit must be limited
and well-coordinated, especially for projects that are directly
or indirectly related to the government and state-owned
companies.
Apart from the short-term agenda to cool the economy down,
another no less important agenda is preparing the national
potential before entering the 21st century that will soon come.
Along with the globalization process and the increasingly
effective new international trading order, the flow of goods and
services between nations will continue to rise.
However, the competition between nations will also become
fiercer. Not only in the domination of export market and control
over domestic market, but also in the fight for the various
scarce resources.
In this process, our national economy will become more
integrated into the global economy. The competition will no
longer be between nations but between entrepreneurs all over the
world.
Apart from economic globalization, other tendencies taking
place today is the increased economic cooperation in various
regions. The European Community and North American countries has
developed it. We too, in ASEAN, have long established economic
cooperation aimed at creating an ASEAN free trade area or AFTA.
In a wider area, the Asia Pacific countries have agreed to
establish cooperation within APEC. The second APEC economic
leaders' summit in Bogor has produced a concord known as the
"Bogor Declaration". They met again recently in Osaka, Japan; and
reaffirmed their commitment to implement the Bogor Declaration.
Indonesia will not wait until the year 2020 to start its free
trade. We have started long ago to make preparations by carrying
out deregulation that begun with the banking sector back in
1983. Last year we have launched again another series of very
comprehensive and far-reaching trade and investment
deregulations. We will continue these efforts. It can be said
that Indonesia has taken the initiative to start the process
rolling with a view to facilitating the flow of goods and
services in our region, preceding the steps of many other
countries.
The 1996-1997 Draft State Budget is envisaged to be balanced
at the level of Rp 90.6 trillion. From this total, domestic
revenues will amount to Rp 78.2 trillion or 86.3 percent of the
total state revenues. The balance of Rp 12.4 trillion constitutes
development revenues. Routine expenditures are expected to reach
Rp 56.1 trillion and development expenditures at Rp 34.5
trillion.
The 1996-1997 Draft State Budget increases by 16.1 percent
compared to the 1995-1996 State Budget. With such an increase,
private savings amount to over Rp 22 trillion, this means an
increase of around Rp 3 trillion or 16 percent compared to the
previous year's.
As to revenues, oil/gas revenues amount to Rp 14.1 trillion
and non-oil/gas revenues approximately Rp 64.1 trillion. This
indicates a stronger domestic revenues structure because the non-
oil/gas revenues has risen compared to the 1995-1996 fiscal year.
As a whole, non-oil/gas revenues have risen by higher than 20
percent. The largest source is tax revenues of Rp 56 trillion,
which means an increase by around 24 percent.
Starting 1995, we have lowered income tax tariff which, among
other things, was intended to raise the competitive edge in order
to attract more investment. This lowered tax tariff might have
led to the decline of state revenues. However, what really
happened was just the opposite. Tax earnings have instead gone
up. This shows that despite the lowered tariff, the basis of tax
earnings has become broader. This also indicates the people's
awareness to fulfill their obligation as good citizens, as tax
payers, has improved.
Although it has risen quite substantially, tax earnings must
and can be raised even higher. Because we have not yet reached
all tax-payers and not everybody who have been targeted duly paid
their tax. One of the yardsticks usually used is the ratio
between tax earnings and national income. Based on this
yardstick, our tax earnings are still low compared to our
neighboring countries.
Furthermore, the budget for civil servants, both at the
central and regional governments, will be over Rp 27 trillion and
it represents almost half of the total routine expenditures. The
government realizes that despite such a big budget, the civil
servants' salary is very minimal compared to their living needs.
This is due to the large number of civil servants working at the
central and regional governments, that in the 1995-1996 fiscal
year reached over 4.5 million people, inclusive members of the
Armed Forces of the Republic of Indonesia (ABRI).
Every civil servant's salary hike has a very great impact on
state expenditures, so all aspects must thoroughly be taken into
consideration. For this reason, as far as this civil servant's
salary is concerned, the government will discuss it with the
honorable House to find the best solution during the
deliberations of the present 1996-1997 Draft State Budget.
Another major routine expenditures are external debt services,
which will reach Rp 19.9 trillion. During the last few years, we
have been trying to reduce the external debt burden by expediting
the reimbursement of high-interest loans which imposed a heavy
burden on state finances. The funds to expedite the repayment of
foreign loans are obtained from the stocks of our State-owned
companies sold in the international capital markets.
Whereas development budget is targeted at Rp 34.5 trillion.
This is about the same amount as the one envisaged for the third
year of REPELITA VI. In this development budget, the rupiah
finances from private savings will reach 64 percent, an increase
of 61.8 percent from the current fiscal year.
In drawing up the development budget, the main guidance was
the 1993 Guidelines of State Policy. The most essential of them
are, among others:
First, development priorities should be placed in the economic
field in tandem with the quality of human resources, in the
framework of creating an advanced, self-supporting and prosperous
Indonesian individual and society in a harmonious coexistence.
Second, development policy should be based on the Trilogy of
Development.
Third, national development is implemented together by the
people and the government. The people are the principal players
in development and the government is obliged to provide the
direction and guidance and create a conductive climate.
The priorities are as follow: first, to promote equitable
distribution of development through, among other things, rural
development under the mechanism of INPRES*), including the
efforts to alleviate the population from poverty; second, to
improve the quality of human resources; third, to continue the
development of basic economic infrastructure; to sustain
development activities undertaken by the community; fourth, to
promote institutional development, both state and social
institutions.
As I have mentioned above, the drawing up of development
budget has also taken into account the international and regional
economic developments as well as the rapid changes resulting from
technological advancement. Attention was also paid to
international agreements that have to be observed in the years to
come, such as GATT/WTO, APEC and ASEAN with its AFTA. For this
purpose, development in various sectors -- whether economic or
human resources -- must be directed towards the establishment of
a stronger platform for future development so as to ensure a
continued, sustainable and well-maintained economic growth.
Development budget also must not put an additional burden on
the current account deficit. This is achieved when the budget is
spent on using domestic products. Basically speaking, the need
for imported goods is met by utilizing foreign soft-term loan and
assistance.
The 1996-1997 development budget is not intended to achieve
the same level of increase in all sectors and regions. But all
sectors and regions will enjoy increases in the local currency
budget.
There are ten sectors that will receive budgets of over Rp 1
trillion: five sectors of them will be higher than Rp 2 trillion,
four sectors over Rp 3 trillion and two sectors above Rp 5
trillion. Development activities which will get an allocation of
more than Rp 2 trillion are -- in the following order --
transportation; rural development; energy and mining; education ;
and irrigation. In addition, development activities which will
receive budgets above Rp 1 trillion are defense and security;
agriculture; post and telecommunications; health as well as
housing and resettlement.
This allocation reflects the development priorities as
prescribed by the 1993 Guidelines of State Policy, i.e. in the
economic field. Its implementation is directed towards the
development of the economic means and infrastructure, and also
sectors that deal with human resources. This also illustrates
that development endeavors have always been based on the Trilogy
of Development. It means that development budget must
harmoniously sustain the efforts for equitable distribution,
growth and the creation of a sound and dynamic national
stability. Sectors which do not get such a big budget do not mean
that they are less important, It is only the needs which are
different than those which require major physical investment and
only the government has the ability or is well-placed to carry
them out. On other sectors, the role of the government is more to
provide guidance, promotion and creation of a healthy climate.
The development budget allocated is more than Rp 506 billion.
The priority is placed in activities which support the growth of
small and medium enterprises as an effort for an equitable
distribution and, simultaneously, as a source of national
economic growth. This will cover, among other things, the
upgrading of technological capacities of industry, management and
marketing. Thus, our industry will be able to boost export. In
addition, it will also sustain the development of strategic
industries and the capacities of industrial workshops and other
technological research and development institutions in providing
technical services and information to the industrial world, as
well as vocational training especially for small industries.
The following sector is agriculture and forestry, which will
have a budget of close to Rp 1.3 trillion. The agricultural
development budget will be more aimed at consolidating food self-
sufficiency, raising the productivity of agricultural manpower
and alleviate the rural population from poverty. This will
include the quality improvement of intensification, development
of agribusiness system for various cash crops and the promotion
of farmers' groups and joint-enterprises with a view to
developing the small-holders economic development in the rural
areas.
In the development budget for forestry, the priority is to
preserve the ecological function and upgrade the economic and
social functions of forests so as to give the greatest possible
benefit to the people's well-being.
The development of the irrigation sector will have a budget
exceeding Rp 2.3 trillion, including 46 percent of foreign aid.
The local currency budget in this sector has risen by almost 42
percent, most of which is for the irrigation sub sector. Most of
the activities using the local currency funds are in areas
outside Java.
Irrigation development is primarily aimed at sustaining the
increase of rice production by, among things, the opening of peat
areas for agriculture covering around 1 million hectares in
Central Kalimantan.
In addition, funds are also allocated to continue the
rehabilitation of rural irrigation in areas covering 350,000
hectares as a follow-up of the effort to rehabilitate rural
irrigation so that they can be planted at least twice a year.
This is a highly strategic effort because it will not only
increase the rice production by using th existing paddy fields
and water resources but also raise the farmer's income.
The manpower sector will obtain a development budget the tune
of more than Rp 187 billion. It will be mainly used to promote
training, prepare skilled workers through institutional training,
mobile training and apprenticeship training.
The sector of trade, development of national business, finance
and cooperatives will have an allocated development budget higher
than Rp 401 billion. This will be used, inter alia, for the
effort to promote the role of the domestic market by the creation
of a more solid trading pattern and distribution system, as well
as the promotion of non-oil/gas export where its structure will
be shifting strongly towards export-oriented industrial products.
The promotion of cooperatives and small enterprises is aimed
at enhancing the small-holders' economic empowerment in the
context of reinforcing the national business order and
supporting equitable distribution and sustainable economic
growth. Today, we have a law on small enterprise, beside a law on
cooperatives and small enterprise, and its promotion has a better
direction and its expansion is carried out jointly with the
extended involvement of all segments of the society.
In line with the development priority mandated by the
Guidelines of State Policy, the development of economic physical
infrastructure continues to receive a big budget allocation. It
covers communication infrastructure, such as roads and other
transportation means and infrastructure.
For this sector the biggest development budget of almost Rp
6.8 trillion is allocated.
The construction of road infrastructure will get the biggest
budget of close Rp 4.2 trillion. Around 69 percent of this budget
will be used for road infrastructure outside Java. We shall build
more than 1,000 kilometers of new roads and 1,100 meters of new
bridges. The main purpose is to open isolated areas -- including
border areas and transmigration sites --, in addition to sustain
development in the rapidly growing areas.
With regard to railways, the activities will cover, among
other things, the assembling of electric trains in the framework
of the transfer of technology, the continued development of the
Cikampek-Cirebon double track and the construction of Citayam-
Nambo new rail track. The program of river and lake
transportation and crossings will include the provision of fast
ferries and continued construction of crossings piers in 30
locations. This budget also covers funds to subsidize the
operation of pioneer crossing boats and buses. Most of the
activities will be in the Eastern part of Indonesia.
The budget for sea transportation will amount to Rp 745
billion. It will be used, among others, to build piers in 35
locations, where almost all of it is aimed at sustaining the
economic activities of the people in isolated areas. Also for the
services of small-holders' shipping, namely 24 pioneer ports and
8 small-holders' ports and 3 general harbors. The construction of
a container ports in Ujung Pandang, which will be greatly
significant for the development of Eastern part of Indonesia,
will also commence soon. This budget will also be used to
continue the subsidies for the operation of pioneer boats.
In sub-sector of air transportation, more than half of the
budget will be used for the construction of various means and
infrastructure for airport services. We will expand 19 airports
and 6 pioneer airports, as well as the operational expenses of
48 pioneer air routes. The budget will also be used to provide
flight safety equipments in the form of flight navigation,
telecommunication, electrical and airport safety equipments,
including for pioneer airports.
The mining and energy sector will still get an ample budget,
i.e. Rp 4.1 trillion. Most of the activities will be in the
development of energy, particularly to support the development
of power generation.
The responsibility of the State-owned Electric Company (PLN)
and the participation of the business community have been
intensified in the development of power generation, especially in
Java and densely-populated areas. Thus, apart from meeting the
need of some of the transmission and distribution in Java, the
government support to PLN will be mainly concentrated on areas
outside Java and on rural electrification. In the year 1996-1997,
there will be an addition of more than 2,800 villages that will
get electricity. So that by the end of the third year of REPELITA
VI, 67 percent of our villages will have electricity. This is a
meaningful step for the equitable distribution and generation of
rural economy.
For another energy program, a relatively big investment is
reserved for the development of gas, which has not yet been fully
used as a domestic energy source. Gas pipes will start to be
built, among other things, from South Sumatra to Riau and it will
end in Batam. Thus, the use of oil, for the production of steam
needed for a more intensive enhanced recovery in the Caltex oil
fields in Duri, can be economized. The energy need of Batam will
also be meet by gas, which is a clean energy source.
The sector of tourism, post and telecommunications will get a
budget of Rp 1 trillion, most of which is funded by foreign aid.
The biggest portion is for the development of post and
telecommunications, especially to expand the range of
telecommunications services. This budget includes the 700,00
additional telephone lines to expand its range down to the rural
areas. Activities in the tourism sub sector will be mainly aimed
at intensifying the promotion both at home and abroad, as well as
improving the quality of tourism products and services.
Rural development has always received priority and a big
budget. Through various INPRES funds and Land and Building Tax,
around 38 percent of the rupiah budget -- or Rp 8.5 trillion --
will be remitted to the regions to help rural development. INPRES
funds and those from the Land and Building Tax remain an
important component of the rural budget, whether in the level-I
region, level-II region or villages.
Whereas the budget for rural development and transmigration is
planned to reach approximately Rp 6.5 trillion.
The principal rural development programs will be carried out
through four INPRES programs, i.e. Level-I Region INPRES, Level-
II Region INPRES, Village INPRES and Least-Developed Village
INPRES (IDT).
From the outset, these INPRES programs are intended to
equitably distribute development. At the same time, they are
also designed to alleviate th population from poverty and to
improve the quality of human resources, particularly the lowest
segment of the society.
The Level-I Region INPRES will amount Rp 1.4 trillion or an
increase by over 11 percent than the current one. This increase
is mainly attributed to the increased assistance which is based
on the size per square of the area, namely from Rp 60,000 to Rp
70,000 per square kilometer. Although all provinces are enjoying
this increase, but those which have large areas will benefit most
and they are generally located in the Eastern part of Indonesia.
The Level-II Region INPRES will have a higher increase, namely
around 15 percent, to become more than Rp 2.9 trillion. The
criteria for the per-capita assistance is also raised from Rp
5,000 to Rp 5,500. Also the assistance based on the size of the
area in augmented from Rp 20,000 to Rp 25,000 per square
kilometer. Assistance to regencies with islands is raised from Rp
5.1 million to Rp 6.5 million per island that has a permanent
population. These increases are very useful to sparsely populated
regions but have a large area or islands.
In the Level-II Region INPRES there are some additional
activities which initially were the responsibility of the
sectoral authority in the central government. The transfer of
responsibility and, at the same time, the funding demonstrate the
greater trust the central government has in the ability of the
regional government to carry out activities which so far have
been carried out at the departmental level or sectoral
institution.
The activity which will be transferred is the construction of
feeder or rural axis roads. Under this program, 600 kilometers of
rural axis roads will be built. The construction of these rural
roads will be primarily concentrated on the least-developed
villages, since their under-development is mostly caused by the
isolated.. Furthermore, there will also be funds made available
for extension field workers who have a very strategic task as the
spearheads in the field, in the effort to maintain and
consolidate food self-sufficiency.
A new component in this Level-II Region INPRES is the
assistance for sub districts, i.e. to enhance the planning
abilities and supervision of development implementation at the
sub district level. At the same time, it is also aimed at making
a more effective coordination of development in the villages of
the same sub district. For this purpose, each sub district will
have funds amounting to Rp 2 million.
The Village INPRES is also increased, especially with the
additional assistance for each village to the tune Rp 500,000, so
that each village will receive an assistance totaling Rp 6.5
million. The additional assistance will all be given to the
Family Welfare Promotion (PKK)*), which eventually has the
responsibility over the promotion of children and teens in the
village concerned. Thus, the funds for rural development of Rp 5
million as a direct assistance managed by the community within
the Village Resilience Council and for PKK -- including the
promotion of children and teens -- will be Rp 1.5 million. In the
Village INPRES, a budget for the promotion of the rural community
is also provided, including training and consolidation of the
Village Council and Village Resilience Council as well as the
enhancement of development potential at the village level. In the
context of rural development, the youth in the village is
encouraged to play an active role in the activities conducted by
the Village Resilience Council. As a whole, the available funds
for the Village INPRES are more than Rp 459 billion.
The year 1996-1997 is the third year of the IDT program. For
this year, only villages which have a population of over 100
heads of family still receive assistance. Villages with a
population under 50 heads of family have received an assistance
once, while those with a population between 50-100 heads of
family have received assistance twice. However, the IDT program
for 1996-1997 will also include villages outside the least-
developed ones in the provinces of East Timor, East Nusa
Tenggara, the Mollucas and Irian Jaya. This is aimed at
expediting poverty alleviation of the people in these areas.
Furthermore, there are a number of level-II regions where all its
villages receives IDT funds, namely: Sangihe Talaud Regency in
North Sulawesi, Riau Islands in Riau, Nias in North Sumatra and
Banggai in Central Sulawesi. The areas of all the Regency consist
of islands.
Thus, villages that get IDT funds will be more than 22,000.
For this purpose, the IDT budget is envisaged to reach almost Rp
480 billion. As a whole, during the three years since the IDT
program was launched in the first year of the current REPELITA
VI, villages that receive assistance for poverty alleviation will
be more than 28,000 villages or about 44 percent of the total
number of our villages.
The poor people in the villages outside the IDT will gradually
be managed under the family welfare savings program or it will be
called TAKESRA. Under this program, the better-off members of the
society are invited to participate in the poverty alleviation.
Thus, the poverty alleviation will truly become a movement by the
whole community inspired by social solidarity. This shall
reinforce the spirit of unity and cohesion, as a strong
foundation for development, which is the practical application of
Pancasila.
Furthermore, the activities of transmigration and resettlement
of forest squatters will cover the opening of 204 housing units
for 55,000 heads of transmigrant family, services for 35,000
heads of family of self-motivated transmigrants. The promotion of
transmigrants at the sites will also be continued, for instance
in the cooperatives, farmers work and social public services.
For the sector of the environment and spatial planning, a
budget exceeding Rp 615 billion is allocated. This is quite a
significant increase in the framework of protecting nature from
destruction and preserving its function.
With regard to spatial planning, the problems we face are, on
the one hand, the limited space as an obstacle to development
--in fact, it is the cause of social tension-- while, on the
other hand, there are still areas which have not yet been fully
utilized. Because of this, spatial planning and land management
will become more important in the years to come. In this
connection, we have to encourage the relocation of production
activities to other regions outside Java and densely-populated
areas. This is extremely important, not only for the preservation
of social and environmental harmony, but also to strike a better
balance of the level of progress and growth between regions. We
must also seriously protect fertile agricultural lands,
especially those with technical irrigation, from being used for
activities except agriculture.
Next, very essential in the effort to develop human resources
is educational development. It also includes national culture,
belief in the One and Only God, youth and sports. Its development
budget is planned to be close to Rp 4 trillion. In this sector,
the most fundamental educational activities are carried out
through programs under the Primary School INPRES.
The primary School INPRES has a budget exceeding Rp 595
billion, it is quite a meaningful increase, i.e. around 19
percent.
There is a big increase in the provision of books, both text
and reading books. The demand for Primary School text books in
REPELITA VI will be more than 212 million. Until the second year
of REPELITA VI, around 88 million books have been provided. The
rest will be provided in the next two fiscal years. In 1996-1997,
funds are made available for the provision of over 80 million
books, consisting of around 62 million text books and 18 million
reading books.
Also will be intensified the refresher courses and the
equivalence to Diploma-II program for religious and class
teachers, numbering 241,000 teachers . It includes the
equivalence to Diploma-II for 108,000 religious teachers and
121,000 class teachers and other refresher courses for 12,000
class teachers. This is an important and strategic activity with
a view to improving the quality of learning and teaching at an
educational level that serves as the basis for further education.
Beside the Primary School INPRES program, priority is placed
in the educational development in order to support and facilitate
the implementation of the nine-year compulsory education. In
addition, the expansion and improvement of vocational training
are also continued and the enhancement of educational quality in
all types, levels and paths of education. Among other things,
fellowships will be granted to those who have potential but their
family is poor. The number will reach 107,000 students. The
quality of higher education will be constantly improved through
the amelioration of educational facilities, including laboratory
equipments and library books, as well as expanded research
activities in universities. It also includes the educational cost
of 6,600 lecturers for Master and 1.040 lecturers for Doctorate
degrees.
The sector of population and contended family receives a
budget of around Rp 328 billion, which is intended for the
continued control of population growth through the family
planning program. It covers activities to develop information and
population statistics in the context of improving population
data, contended family mapping and various education and training
programs.
The sector of social, health, women's role, children and the
teens will have a budget of close to Rp 1.4 trillion. Most of
this sectors budget is for health development.
Public health services program is mostly channeled through the
Health INPRES. A budget to the tune of about Rp 525 billion is
set aside for this sector, quite a meaningful increase compared
to the current one. One of the components that enjoys an increase
is assistance for medicine, where the per unit is raised from Rp
775 to Rp 800 for every individual.
In the Health INPRES program, the assignment of doctors,
midwives and other medical personnel to regions all over the
country, will be continued. This year, 13,000 midwives will be
assigned. This way, all the need for rural midwives will be
fulfilled, totaling 54,000 persons. They are given assistance in
the form of rural maternity wards -- while at the same time serve
as boarding houses for the midwives -- and equipments for them.
The budget for health services in the isolated areas in
increased very substantially, i.e. around 133 percent, especially
for the assignment of health personnel to areas that do not have,
or very far away from, public health centers or auxiliary public
health centers.
In the Health INPRES there is a new program, i.e. assistance
program for the improvement of nutrition and health of children
and teens.
Primary School children in the least-developed villages and
isolated areas outside Java and Bali will be given an extra
nourishment, because generally speaking their diet is seriously
nutrition-deficient. This extra nourishment will be provided
three times a week, by using the local agricultural food
products and following the guidance on healthy and nutritious
food prepared by the nutritionists.
This extra nourishment has previously been provided in the
1995-1996 fiscal year, as pilot projects in 26 provinces,
involving 35,000 school children. The experience of this work
became the basis for implementation of this expanded program.
Based on this experience, it was discovered that one of the
health of Primary School children is the high prevalence of
intestinal worm disease. The extra nourishment will have little
meaning if this problem is not overcome. For this reason,
children who will receive this extra nourishment must also be
given anti-worm medication once a year and this will suffice.
This is a very fundamental endeavor. Because, in the long-run,
it will produce children who are the seeds of Indonesia's
qualified human sources; that is, children with high productivity
because they are intelligent, healthy and endowed with stamina.
Furthermore, this program will greatly help the rural economy, as
it will directly use agricultural products produced by the
village.
At the first stage, this program will cover more than 1.7
million school-children involving over 18,000 Primary Schools.
Furthermore, it will be gradually intensified by the year, so
that in the end most of Primary School children will get this
extra nourishment.
Window A: The macroeconomic policy we have been pursuing over the
last few years has brought confidence in Indonesia's future economy.
Window B: Indonesia will not wait until the year 2020 to start its
free trade. We have started long ago to make preparations.
Window C: Primary School children in the least-developed villages
and isolated areas outside Java and Bali will be given an extra
nourishment.