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.