TEMPO.CO, Jakarta - Without any fuss, the government gave the green light for the budget to build a new House of Representatives (DPR) building. The significant sum almost Rp1 trillion has been included in the 2018 state budget. A storm of criticism questioning the urgency of a new office for the DPR at a time of declining state revenues has not pricked the conscience of the government to oppose the DPR`s wishes.
The government's approval came at the same time as the DPR's big nod to the 2018 state budget. It is not surprising that some have questioned whether a deal was made between the government and the DPR. Did the government intentionally compromise itself by approving the new building for the DPR, in exchange for the legislature passing the 2018 State Budget?
The funding for the new building is in one package with the 2018 budget allocation for the DPR, which totals Rp5.7 trillion, while the total for this year is only Rp4.3 trillion. Once it is in the 2018 budget, the problem will continue for years as it is a long-term project. The 2018 allocation, worth Rp601 billion, with another Rp302 billion to build Democracy Park, is only the first stage of the new building's reconstruction plan.
Moreover, the government's approval was surprising because it is a striking reversal from their previous position. Initially, Vice President Jusuf Kalla and Finance Minister Sri Mulyani indicated their opposition to the DPR request. But the approval was announced on October 9, right at the end of the DPR's budget deliberations.
This decision is very unwise. As a technocrat with a good understanding of sound fiscal management, Sri Mulyani knows that there is one fundamental and overriding principle in formulating state budget: every rupiah the government spends must drive growth as much as possible. When making his speech about the 2018 proposed state budget on August 16, President Joko Widodo stuck to this principle. The president clearly stated that next year's proposed state budget must become a fiscal instrument able to drive economic growth and equality.
The approval of this new building's budget is proof of how the government has disavowed this principle, which is now no more than empty words. This is despite the fact that the Constitution also mandates healthy and rational fiscal management. Article 23 of the 1945 Constitution clearly states that the state budget is the realization of the management of state finances implemented transparently and responsibly for the maximum possible benefit of the people. The Constitution says nothing about state funds being used for the enjoyment of the people's representatives.
Given this constitutional mandate, the government must select programs that result in the greatest possible leverage for the economy. The construction of new buildings for state institutions, no matter what they are, is not spending that drives economic growth. A new building costing trillions of rupiah is a waste and does not add to the productivity of the economy. This spending is widely off the mark, and will have little impact on economic growth or public prosperity.
The amount of money wasted on this new building is even more jarring if it is compared with the allocation of funds for productive economic activities. For example, the government was only able to find Rp1.035 trillion to renovate 166 markets throughout Indonesia in 2017, despite the fact that the renovation will mobilize the economy for millions of people. Spending like this is far more important than providing extra comfort for the members of the DPR whose productivity is so low.
