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Jakarta Forced to Cut Funding for Infrastructure Projects

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21 April 2015 08:00 WIB

TEMPO.CO, JakartaThe Jakarta Administration plans to scale back its infrastructure projects that had been laid out in its Regional Budget (APBD) for 2015, in light of the Home Ministry's decision to cap its budget at Rp69.28 trillion.

Previously, the Administration had asked the Home Ministry for Rp72.9 trillion, but the Ministry decided to cut it to Rp62.9 trillion because the conflict surrounding the city's APBD between Jakarta's Administration and its Legislative Council (DPRD) had already caused four months to have elapsed - which means that there are less time to finish the infrastructure projects proposed for 2015. "We'll have to make do with what the Ministry has agreed to," said Jakarta Governor Basuki Tjahaja Purnama on Monday.

According to Basuki, the APBD request that was submitted by his Administration to the Home Ministry does not differ with the final version that was agreed upon by DPRD and the City Council. That said, Basuki suspects that his Administration is being punished for not agreeing to include the unreasonable demands for funding made by DPRD members. "Every time there's a discrepancy in the Regional Bylaw on Budget, the Council always suffers as the Ministry will cut its funding," he said.

The Head of the Regional Financial Management Agency, Heru Budi Hartono, explained that the budget for grants, social funds, project and/program socialisation funds, land acquisition are among the areas whose funding has been decreased by the Home Ministry. "The funding for the physical construction of the city's infrastructure, for example, will be decreased by Rp2.3 trillion," he said.

Grants and social welfare aids will be reduced by Rp1.36 trillion, continued Heru, who said that the Administration had initially asked the Ministry for Rp300 billion to fund its grants, but only Rp240 billion has been approved. As such Sub-Districts Grants will be reduced from the proposed Rp100 billion to Rp84 billion.

That said, Heru said that the decision to make the cuts was done in accordance and observance of the needs of every posts. "For example, Sub-District Grants are not actually being reduced - we simply used the previous years' budget as a reference to set the cap," he said.

According to Jakarta DPRD member, Selamat Nurdin, the City's request for Rp72.9 trillion in funding is essentially invalidated by the Home Ministry's decree, and as such, the amount granted could not be changed even if the City Council decides to amend its Budget (APBN-P). "There could be no further changes to budget once the Decree comes into effect," said the Head of the Jakarta Chapter of the Prosperous Justice Party (PKS) in Jakarta.

However, the spokesman for the Home Ministry, Doddy Riyatmadji said that the budget could still be revised to meet the needs the city's administration, despite the ministry's decision to slash the its' funding for the city. "In the end, the amount granted will have to reflect the city's needs," he said.

AISHA SHAIDRA| ERWAN HERMAWAN




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