TEMPO.CO, Jakarta - The Institute for Development of Economics and Finance (INDEF) is rather pessimistic that the Jakarta provincial government can use up all of its budget by the end of this year.
"Surely not all will be absorbed. It's a bit difficult to have a leftover of more than 30 percent by mid-year," INDEF economist Bhima Yudhistira said on Wednesday, June 20.
As of mid-June, the Jakarta administration's budget absorption is some 24 percent of the total allocation of Rp77.1 trillion.
"If the budget is not fully-absorbed, Jakarta's economy will be less than optimal," Bhima said.
Bhima said the slow budget absorption is more or less the effect of Governor Anies Baswedan and his deputy Sandiaga Uno's leadership, as they have been ruling for less than a year and require adjustments.
"Maybe because it is a new government, there are still adjustments to make. There are obstacles from the planning to the technical stages," he said.
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