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)