Subdistricts given more autonomy over finances

JAKARTA (JP): More than 260 subdistricts in the city now have greater freedom in managing their own finances under a bill on the subdistrict financial management system just passed by the City Council.

The bill, which was approved by the council during a plenary session on Wednesday, is also aimed at facilitating the subdistrict offices to improve their services to the community.

The law gives the authority to subdistrict offices, apparently in cooperation with the newly established subdistrict councils, to formulate their own routine and development budgets. This budgeting was formerly determined by the governor's office.

Sutarno, chairman of the City Council's Commission A on administrative affairs, proposed a budget of Rp 300 million (US$139,000) for each subdistrict per year.

The bill had been drafted by the executive branch after a successful implementation of a pilot project in subdistrict councils in ten areas.

The pilot projects included the subdistricts of Duren Sawit in East Jakarta, Pondok Pinang in South Jakarta, Jelambar Baru and South Kedoya in West Jakarta, Kampung Bali and Karang Anyar in Central Jakarta and Pejagalan in North Jakarta.

Jusuf Hamdani, chairman of the United Development Party's faction at the council, underlined the necessity to eradicate what he called disgraceful practices among subdistrict officials. This included charging residents high "administrative fees" for what should be free or low cost public services.

Apparently, low salaries have forced some subdistrict officials to collect "administrative fees" from residents when they visit the subdistrict office to process personal documents, such as identification cards, letters of reference which are needed to obtain good conduct reports from the police and other papers.

The amount of the fees vary from one service to another, but those who want to get their land deeds processed, for example, usually have to pay a large amount of money.

Hamdani hoped that the additional funds and the greater level of control would help the subdistricts eliminate these illegal practices.

Nawadji, the chairman of the Armed Forces faction at the council, also hoped that with the approval of the bill the subdistrict offices will improve their services to the community so that residents will become more motivated to pay taxes. (arf)