Sutiyoso seeks compromise on budget revision

Sutiyoso seeks compromise on budget revision

Bambang Nurbianto
The Jakarta Post/Jakarta

Recognizing city councillors opposition to the revised budget
proposal, Governor Sutiyoso proposed on Thursday to further
reduce the additional budget spending from Rp 571 billion
(US$62.07 million) to Rp 471 billion.

Should the spending be approved, the total 2004 city budget
would stand at Rp 12.731 trillion. The city's 2003 budget was Rp
11.65 trillion.

"I understand the City Council opposition to us taking some of
the additional budget from the reserve fund. We hope next year,
we can use the fund," he told a council plenary session.

Sutiyoso's administration had planned to use Rp 240 billion of
its Rp 863.52 billion reserve fund for the extra spending.
Another main source for the additional funds would come from an
expected increase in revenue from vehicle taxes and transfer of
vehicle ownership taxes.

However, councillors have strongly opposed the use of the
reserve fund, which is supposed to be earmarked for emergencies
such as floods, fire and outbreaks of disease.

Bylaw No. 10/1999 on city reserve funds says the funds can
only be used for situations of force majeuer or to finance vital
unfinished projects. In times of emergency, the governor can use
the funds without having to obtain the council's approval.

Councillors had initially argued that if the administration
wanted to use the funds for unfinished projects, the governor
should first make a detailed report on the projects to the
council.

Sutiyoso said his administration would reduce expenses for
land acquisition for the construction of the East Flood Canal and
the busway corridors stretching from Pulogadung, East Jakarta, to
Kalideres, West Jakarta, via National Monument (Monas).

City secretary Ritola Tasmaya said the councillors' opposition
would not significantly affect the related projects.

"We can still start the construction of the busway corridors
this year with the available funds," he said, expressing his
optimism the corridors would be operational in June.

The administration will reduce the budget for the busway
corridors construction from the estimated Rp 167.12 billion to Rp
109.1 billion.

It would also only spend about Rp 40 billion this year from
the estimated Rp 100 billion put aside to buy land for the East
Flood Canal.

Ritola said the reduction would not affect priority
infrastructure projects such as school buildings and city roads.

Councillor Totok Ismunandar of the Indonesian Democratic Party
of Struggle (PDI-P) said his faction might accept the proposed
budget revision.

"We can accept the budget as long as the administration gives
us a clear explanation about the source of the funds," he said.

Totok said the councillors would hasten to debate the budget
so it would be approved before their tenure ended on Aug. 25.

Sutiyoso said his officials would work overtime to assist the
council. If the bill was not passed in time, he would ask the new
councillors to continue the deliberation, he said.