TEMPO.CO, Jakarta – The absorption of the Jakarta Budget (APBD) until October 2014 only reached 30 percent of the total Rp72.1 trillion (US$6 billion). One of the city’s agencies with the lowest budget-absorption rate is the Public Works Agency.
Jakarta Public Works Agency head Manggas Rudi Siahaan admitted that the budget absorption in his institution was still below expectations. He revealed on Thursday, October 30, 2014, that the agency had yet to allocate some 40 percent of its budget.
According to Rudi, the low budget-absorption rate at his institution ensued from multiple factors, especially by those relating to land acquisitions. In addition, goods and services procurement processes have also brought about the low rate of budget-absorption. However, Rudi is optimistic that the budget absorption at his agency will increase by year-end.
The Jakarta Public Works Agency receives Rp6.29 trillion (US$524.1 million) from the APBD, comprising Rp6.156 trillion (US$513 million) for direct spending and the rest for indirect spending. The biggest allocation of the budget is directed to water resources and utilities network.
ERWAN HERMAWAN