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.