Thu, 27 Oct 2005

Susilo expresses shock at news of budget increase

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono was "very shocked" after reading news about the government's plan to raise the budget allocation for his presidential office by 57 percent next year -- this despite the fact that he approved the 2006 draft state budget himself.

"This morning, the President was very shocked by the news of a 57 percent increase proposed for the presidential office budget under the 2006 draft budget," presidential spokesman Andi Mallarangeng told a news conference on Wednesday.

He said Susilo had never received a report from his subordinates on the plan to increase the presidential office budget to Rp 1.147 trillion (US$114.7 billion) from this year's Rp 727 billion.

To seek clarification, the President summoned Minister of Finance Yusuf Anwar, Cabinet Secretary Sudi Silalahi, State Secretary Yusril Ihza Mahendra and other senior officials to explain the increase, Andi explained.

Jusuf said the 2006 draft budget, including the 57 percent rise, had been approved by the President.

"I did not approve it. It was approved during a Cabinet meeting. The head of the Cabinet is the President," Yusuf told reporters after the meeting at the Presidential Office.

Asked why Susilo was surprised by the news, Yusuf said that he believed the President may not have been aware of the precise details contained in the draft budget.

"It is the state secretary who knows the details of the budget for the presidential office. The President may not have been aware of the position as I only gave a general report," he said.

According to Yusuf, the 57 percent rise was unavoidable given the increasing cost of running the presidential office.

"The increases have affected all departments and ministries. Why has (the media) only focused on the budgets for the presidential office and the vice presidential office?" he asked.

Sudi Silalahi defended the increase on Tuesday, saying it was "proportional and in accordance with planned concrete programs" by the presidential office.

The news about the government's plan to increase next year's budgets for both the presidential and vice presidential offices was published by several media outlets earlier this week, quoting a statement from Ramson Siagian, a member of the House of Representatives' budget committee.

Andi said the media-sensitive President only became aware of the news on Wednesday after traveling around Sulawesi island on Monday and Tuesday.

The reports came amid public protests against the House's decision to allocate Rp 10 million in "operational allowances" to each of its 550 members following the steep increase in fuel prices.

The news about the rise in the presidential office's budget is likely to further stir public anger in the midst of the economic hardship resulting from the fuel price hikes.