Soeharto warns on power abuse

Soeharto warns on power abuse

JAKARTA (JP): President Soeharto is warning provincial
authorities not to abuse the stronger power and greater autonomy
given to them.

In a written message presented at the meetings for the
transfer of lists of development projects to provincial
administrations, the President said that the stronger power
should not be used to create bureaucratic problems that may
hamper the country's development efforts.

Soeharto's message was read out by the ministers who
delivered the lists to governors in ceremonies in the capitals of
the country's 27 provinces.

For example, Minister of Education and Culture Wardiman
Djojonegoro delivered the list of development projects for
Jakarta, Minister of Defense and Security Affairs Edi Sudradjat
passed on those for East Timor, Minister of Health Sujudi for
West Java, State Minister for Agrarian Affairs Soni Harsono for
Central Java, State Minister for Population Affairs Haryono
Suyono for East Java, State Minister for Social Affairs Endang
Kusuma Inten Suweno for Jambi, Minister/State Secretary Moerdiono
for Bali and Minister of Finance Mar'ie Muhammad presented the
papers for South Sulawesi.

The development projects are expected to be constructed within
the 1994-1995 fiscal year beginning on April 1. The lists also
contain the amounts of funds allocated for the development
projects in the provinces.

Motivation

The President said the stronger power should enable the
provincial authorities to create breakthroughs in motivating
development efforts, which are often impeded by bureaucratic
problems.

"The more autonomy given to the local administrations should
not, instead, be used to create new problems through the
introduction of new bureaucratic procedures," he said.

Soeharto said that the power given to local administrations to
collect all receipts from property taxes is expected to further
strengthen their financial capability to develop their provinces
and regencies.

Beginning this fiscal year, the first year of the Sixth Five
Year Development Plan (Repelita VI), local administrations are
allowed to use all the property tax collected in their provinces.
Previously, around 10 percent of the property tax had to be sent
to the central government.

"The collection of the land and building taxes should be
intensified to increase the local administrations' financial
sources," the President said.

However, he warned that the intensified measures for
collecting property taxes should not increase the burden on the
public.

The government's 1994-1995 budget rose by 11.2 percent to Rp
69.74 trillion (US$33.22 billion) both for revenues and spending
from Rp 62.32 billion in the 1993-1994 fiscal year. Around Rp
42.35 trillion ($20.16 billion) of the total budget will be used
for routine spending, including subsidies of Rp 7.09 trillion
($3.4 billion) for provinces, and the remaining Rp 27.39 trillion
for development projects.

The central government's funds for development projects are
integrated into the budgets of provincial administrations.

Long-term plan

The President said in his message that the country's second
25-year development plan, effected as of April 1, is part of the
government's sustainable development program introduced over 25
years ago.

"The second 25-year development plan is the continuation and
the expansion of the first 25-year development plan," he said.
"But we will not hesitate to introduce reform in efforts to
correct the development mistakes of the past."

Speaking on the political aspects of the situation in the
country, Soeharto said the present conditions are very
encouraging and that the democratization process continues with
political institutions becoming more mature.

"The political stability should be maintained and the
democratization process should be further encouraged," he said.

The President said Indonesia was successful in building up its
economy during the first 25-year development plan period, but
added that the challenge will be tougher in the coming years.

"We are not only facing tougher competition in winning export
markets, but also in obtaining financial sources overseas," he
said, adding that economic recession and the scarcity of sources
of investment worldwide would continue impeding the country's
economy. (hen)