State budget proposal for 1995-96

State budget proposal for 1995-96

In the railway sector, works will start, among other things, for
the construction of new tracks extending 20 kilometers in the Citayam-
Cibinong and Medan-Gabion stretches and a full double track in the
Cikampek-Cirebon stretch.

For areas outside Java, especially the eastern part of Indonesia,
water, lake and ferry transportation are extremely important. This is
the reason, therefore, why we will build ferry wharves in the
Molluccas, Irian Jaya, West Nusa Tenggara and East Nusa Tenggara, as
well as river wharves in Kalimantan and Irian Jaya. Furthermore, we
will build container ports in Ujungpandang and Semarang, as well as
more auxiliary navigational means especially in the Malacca and
Maccassar straits.

The mining and energy sector will have development funds of Rp 3.9
trillion. The largest budget is for the energy sub-sector, although the
mining sub-sector has also increased due to, inter alia, the
development of small-holders' mining.

Development in the energy sector is more directed at power
generation infrastructure aimed at meeting equitably the demand for
electricity outside Java and villages all over Indonesia, as well as
enhanced efficiency of the power supply. Electricity will also be
provided for about another 3.400 villages, mostly are located outside
Java. In the meantime, to improve efficiency, an inter-connection
system will be built in Sumatra and preparations will be started for
inter-connections in Kalimantan and Sulawesi.

The tourism, post and telecommunication sector will have a budget
of Rp 1 trillion. Compared to the previous budget, it represents quite
a substantial increase.

Tourism is a service industry and we are counting on it in the
future. During the past 1994, the number of foreign tourists visiting
Indonesia reached four million and brought in foreign exchange close to
US$4.7 billion. We hope the number will even be higher in the coming
year. By the end of Repelita VI, hopefully it will become the primary
foreign exchange earner besides oil/gas, textile and textile products.

In the coming fiscal year, we will provide almost 900,000 new
telephone lines. The development of telecommunication will also partly
be undertaken by the private sector through an operative cooperation.

The largest development budget is reserved for rural development
sector, namely Rp 6.1 trillion. The main rural development projects are
carried out through four Inpreses; namely Level I Region Inpres, Level
II Region Inpres, village and Least-Developed Village Inpres.

Level I Region Inpres is envisaged at almost Rp 1.3 trillion.
There are two quite fundamental increases in this Level I Region
Inpres. First, starting with the 1995-'96 fiscal year, the Level I
Region will receive aid to operate and maintain an irrigation network
built in the respective regions and which has become the responsibility
of the regions themselves. This irrigation network covers about 5.9
million hectares. Furthermore, aid is provided to enhance the functions
of planning and supervision in the regions, to reinforce human
resources and institutions of the Level I Regional Development Agency
and provincial inspectorate. Thus far, the aid provided has only been
limited to the monitoring of development projects in the region
concerned.

The Level II Region Inpres will have a budget of Rp 2.5 trillion.
The basis of the aid provision does not change, but its size increases
because Indonesia's population is growing with another 3.1 million
persons. The Level II Region Inpres has also gone up because most of
the funds for the rehabilitation and maintenance of Public Health
Centers under the Health Facilities Inpres have been shifted to Level
II, so the Regional Governments are truly responsible for the operation
and maintenance of Public Health Centers. In the current fiscal year,
the rehabilitation of public and Islamic elementary schools is the
first to be shifted from Elementary Schools Inpres to Level II Region
Inpres. As is the case with Level I Region Inpres, there is a new
additional component in Level II Region Inpres, namely assistance to
enhance the institutions of planning and supervision in Level II
Region.

As to Village Inpres, the amount of aid for each village has not
changed because it was recently raised last year. However, the total
projected amount has risen, namely about Rp 426 billion, because of the
growing number of villages, from 63,920 to 64,367.

Finally, the Least-Developed Village Inpres, which we have just
started in the current fiscal year. Because it is a new program, there
has initially been problems in the field, including some deviations.
However, they have been immediately overcome by the Regional
Government.

In connection with the Least-Developed Village Inpres, starting in
1995-'96 we will build rural infrastructure such as rural roads, rural
bridges and clean water to sustain the people's economic activities
and public health. The construction of these rural infrastructure is
meant to overcome problems that cause poverty and it will be carried
out through integrated sectoral and regional programs. In the current
fiscal year, an aid amounting to Rp 330 billion is provided to build
facilities and infrastructure such as roads and bridges, clean water
and local sanitation. This program will last for three year, covering
more than 7.800 least-developed villages. The development or rural
facilities and infrastructure is carries out by using simple technology
and is directly undertaken by the people with the guidance of the rural
civil defense body of the village. Thus, the work force, the available
materials and the skills of the village will be fully utilized.

On transmigration, its development is aimed at stimulating the
growth of the least-developed regions by providing skilled human
resources in various fields such as food farming, plantation, fresh-
water ponds and forestry. It involves sponsored and assisted self-
reliant transmigration of 50,000 families. In addition, the self-
reliant transmigration of 27,000 families will also be encouraged.

A budget of about Rp 517 billion is allocated for the sector of
the environment and spatial planning. The preservation of the
environment is primarily intended to intensify and continue the
programs of clean river, control of pollution and damages to the
maritime ecosystem, protection of coastal areas from abrasion,
rehabilitation and management of watershed and enhancement of the
potential of environmental institutions in the regions, as well as the
development of national parks.

Next, is the primary sector in human resources development, namely
education, national culture, belief in God Almighty, youth and sports.
This sector will obtain a development budget of almost Rp 3.4 trillion.
One of the important programs which has been carried out since the end
of REPELITA I is Elementary Schools Inpres. In the coming fiscal year,
a budget of around Rp 498 billion is available.

Activities will be concentrated on the improvement of the quality
of education by providing, among other things, 60 million textbooks, or
twice the present number. In the construction of new Elementary
Schools, priority is given to new settlement areas, such as
transmigration sites and the newly-constructed housing complex by
PERUMNAS*). Furthermore, assistance will be provided this year to both
public and Islamic elementary schools to promote sporting and scouting
activities to the tune of Rp 100,000 for each school.

In the context of implementing the 9-Year Compulsory Primary
Education, the construction of secondary school buildings, quality
enhancement if teachers and the improvement of the quality of the
teaching process will be carried out.

Closely, connected with the enhancement of the quality of life is
the sector of social welfare, health and women's role, children and
teenagers, that still enjoys a great attention. The funds earmarked are
Rp 1 trillion, most of it will be used for the health sub-sector. The
budget for the provision of medicine is raised through the Health
Inpres in order to meet public demand for medicine, especially for the
underprivileged. Also through the Health Inpres, health services to the
rural population in the isolated and least-developed villages will be
intensified. At the same time, funds are available for training, board
and lodging as well as instruments for midwives in the villages, also
for other para-medics. A budget of around Rp 370 billion is allocated.

The development of housing and settlements is extremely important
for the people's life. Apart from food and clothing, housing is the
most fundamental need of every individual.

A development budget of Rp 1.1 trillion is available for this
sector. It will be used, among other things, for the preparation of a
ready-made housing complex and the provision of basic infrastructure
and facilities for the construction of 90,000 units of simple and very
simple houses.

In the meantime, a budget of around Rp 183 billion is provided for
the religious sector. It will be used, inter alia, to support the
implementation of the 9-Year Compulsory Primary Education, as well as
the enhancement of educational quality in religious schools in general,
including public and Islamic secondary schools and religious schools of
higher learning.

The science and technology sector will receive a budget of more
than Rp 711 billion. We are aware that the development of both science
and technology is extremely important in preparing the Indonesian
nation to enter the take-off stage and the Second National Awakening
era. Activities will among others cover research in nine scientific
disciplines that have the best chance to accelerate the pace of
development, such as biotechnology, agricultural product technology and
engineering. In addition, pioneering efforts are being made in the
superior partnership research.

In the area of statistics, the activities of economic census and
intra-census population survey will reach their peaks in the 1995-'96
fiscal year, so there is quite a substantial increase in the budget. In
the framework of sustaining the enhancement of efficiency and
productivity of the implementation of development and governmental
affairs, an information system is being developed in various
development sectors.

We are all looking closely at the promotion and reformation of the
law. In fact, in the 1993 Guidelines of State Policy, law is a
development sector on par with other fields. We are aware of the
importance of the role of law as markers in the journey to develop the
nation; which gives a peaceful feeling, certainty and justice. For this
purpose, the legal institutions must become more functional and the
awareness of the state apparatus and society of the law must become
more acute.

The budget for the development of law is planned to be over Rp 138
billion. We shall build and rehabilitate physical infrastructure of
justice agencies and prisons, and intensify the implementation of an
integrated national legislation program.

In compliance with the message of the Guidelines of State Policy,
political development is meant to create a more orderly political
life based on Pancasila democracy which is increasingly capable of
ensuring the functioning of political and social institutions, the
consolidation of the political communication process and the growth of
a responsible openness in both atmosphere and attitude.

political development also seeks the enhancement of the people's
political awareness through a more expanded and qualified political
education, consolidation of political ethics, morale and culture based
on Pancasila, encouragement of the people's political participation and
promotion of a familial climate in our life as a society, nation and
state.

Furthermore, the development of information, communication and
mass-media will continue t expand the equitable distribution of
information about development by promoting open and responsible two-way
communication, expanding the scope and enhancing quality of radio and
television broadcasts as well as consolidating a sound and responsible
national press.

The development budget for the political, foreign relation,
information, communication and the mass-media sector is set at around
Rp 152 billion.

As to defense and security, according to the message of the 1993
Guidelines of State Policy, its development is directed towards the
creation of a dependable resilience based on the overall people's
defense and security system. For this purpose, efforts will be made to
put into order and develop the potentials of all state defense and
security components in line with technological advancement and
consolidation of capabilities through education and training, as well
as the improvement of the soldiers's well-being. In the next fiscal
year, its development budget is earmarked at Rp 1.3 trillion. This is
quite a substantial increase from the current one. Part of it will be
used to rehabilitate soldiers' barracks and housing.

Eight months ago we completed well the First 25-Year Long-Term
Development program. In these days we are taking the initial steps to
embark on the Second 25-Year Long-Term Development program, the take-
off stage, the Second National Awakening era.
In another five years, mankind will enter a new age, the 21st century.
In entering this new age, our world today finds itself in a
transitional period. The great trend of the world today is leading
towards a better future for the well-being of mankind. When welcoming
the advent of the new year 1995 five days ago, I said the world is
undergoing major and fundamental changes, filled with new hopes and new
challenges. The hope for peace replaces the threat of war, the spirit
of partnership is replacing the lust for hostility, justice is
replacing oppression, understanding is replacing suspicion.

The changing process is still looking for a new form. We are
indeed in a transitional period from one era to the next.

All transitional periods have always been decisive moments. The
weaknesses which exist at the beginning of the transitional stage do
not only reflect the shortcomings of what we have done in the past, but
also become burdens we have to bear in the next stage. Conversely, the
successes we have achieved together will become a strong foundation for
our next steps.

One of the unique characteristics of the future that lies ahead
today is the speed of changes in all areas, made possible by scientific
and technological progress.

In welcoming this future, every nation must prepare itself, set
its house in order, both internally and extremely. Internally, the
governmental and economic orders must be shifted from centralized to a
more decentralized order, so as to open widely the people's initiative
and creativity. Externally, the flow of the trade, service and capital
must be generated and facilitated. A better future for the world can
only be created by way of promoting the people's initiative and
creativity and through international cooperation and openness.

Our nation is an integral part of the changing world.
Consequently, we have to take major steps to prepare ourselves before
entering this new era. If we are not willing to make adjustments, if
we are just late, we will be left behind and left farther behind.

We are grateful that we have been preparing ourselves over the
years. We have continuously been adopting deregulation and
debureaucratization measures. We have taken steps to give greater
emphasis on the autonomy of the Level II Region.

Externally, we have been consistent in implementing an independent
and active foreign policy. In the area of global trade, we have
ratified the GATT agreements. In the middle of last November we have
enunciated, together with other APEC members, the Bogor Declaration. We
must be ready to capitalize on the free trade and investment of the
industrialized countries no later than the year 2010. We ought to be
prepared to fully open ourselves up no later than the year 2020.

We are going through adjustment process, both international and
externally, consistent with the state philosophy Pancasila and the 1945
Constitution. We remain loyal to the national aspirations and goals, to
democracy and the spirit of unity, cohesion and solidarity, that have
been the intentions of our predecessors and founding fathers.

The free trade system in the future requires social support,
namely a society that allows a healthy competition between its members.
Furthermore, it should make its members ready and accustomed to
competing in a healthy manner. At the same time, the socio-political
and mass organizations should equip their members to stand ready to
face future challenges.

We must be confident that we have the ability seize opportunities
and face future challenges. This is the reason why we are planning the
Second 25-Year Long-Term Development program.

There us a prerequisite we have to fulfill before entering the
future. Namely: the consolidation of our nation's unity and cohesion.
As the saying goes : United we stand, divided we fall.

In another eight months, we are going to commemorate a half
century of the Republic of Indonesia. The commemoration this time must
be more special than in previous years. The commemoration this time
must be a manifestation of our gratitude for the Independence as a
blessing of Almighty God. The commemoration this time must reinforce
further the solidity of democratic roots of our Republic.

Both in the national and provincial levels, we have to show what
we have achieved during the half century. We must also have a picture
of what we ought to do in the future. The society's role must be
manifested in the overall commemoration of the half century of
Independence, because the sovereignty of our country actually belongs
to the people. We have to celebrate it in places where is some
historical significance in the process of Proclamation and Independence
Struggle, as well as in the sites of important national and regional
development projects.