TEMPO.CO, Jakarta - Ahmad Erani Yustika, the Institute for Development of Economics and Finance (Indef) Executive Director, said that the government must have the guts to cut bureaucracy budget in the 2015 revised state budget (APBN-P). "Fifteen percent [reduction] is enough," he said in Jakarta, Thursday, November 27, 2014.
According to Ahmad’s assessment, there is too much bureaucracy spending done by government. "Next year is 23.5 percent [of the State Budget] if I'm not mistaken," he said.
Erani added that the government only focused on revising the productive spending post in setting the APBN. However, they do not want to skimp on bureaucracy spending. "The bureaucrats will be pleased if that doesn’t change, their interest is not disturbed," he said.
Erani noted that when Susilo Bambang Yudhoyono first took the office in 2004, bureaucracy spending was only 16.23 percent with the consideration of remuneration and expansion of some areas. Last year, however, it reached 22.17 percent or around Rp 300 trillion more than what was stated in the APBN. "There was a seven percent increase," he added.
At the same time, the capital expenditure for productive sector only increased slightly within the last 10 years. In 2004, capital expenditure was 6.4 percent, while in 2013 it was only 8.06 percent. Erani added that although the government had managed to save money on other sectors, such as on official trips, the APBN would remain overburdened by bureaucracy spending. "It is still possible to cut down on bureaucracy spending," he said.
Erani suggested that the government mst set the limit of bureaucracy spending to a maximum of 15 percent of the APBN and increased the limit of productive sectors to 85 percent. “How can the bureaucracy get almost 25 percent of the APBN?” he said.
JAYADI SUPRIADIN
