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Budget plan slammed over fears of misappropriation
The East Java provincial administration has been criticized for not prioritizing economic growth for the 2014 fiscal year, as is evident from the further drop in development and infrastructure budget funds, especially the maintenance of roads, submitted by the executive body in its proposed 2014 provincial budget
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he East Java provincial administration has been criticized for not prioritizing economic growth for the 2014 fiscal year, as is evident from the further drop in development and infrastructure budget funds, especially the maintenance of roads, submitted by the executive body in its proposed 2014 provincial budget.
Expert staffer at the East Java chapter of the Indonesian Forum for Budget Transparency (FITRA), Madekhan Ali, said the administration had only proposed budgetspending of Rp 409 billion (US$34 million) to the Public Works Ministry Bina Marga (highways) directorate general, which is less than the Rp 480.5 billion in 2013.
Of the amount, Rp 119.5 billion would be used purely for road and bridge maintenance, while only Rp 241.7 billion would be allocated for the province's road and bridge development program and the Southern Ring Road.
'This shows that the East Java administration has not prioritized economic growth next year, as road construction and maintenance are not supported by sufficient funds,' Madekhan said recently.
According to the East Java Bina Marga website, roads in the province cover 1,760.91 kilometers, 338 km of which are in good condition; whereas 1,420 km are either slightly or severely damaged.
With the total budget of Rp 409 billion, Madekhan continued, Bina Marga had allocated only Rp 84.2 million per kilometer of road, whereas according to the Public Works Ministry's periodic maintenance standards, a kilometer of road requires between Rp 200 million and Rp 333 million in maintenance costs.
'We can see that last year, the East Java administration allocated budget funds of Rp 147.6 million per kilometer of road, which is far less than the necessary amount for road maintenance set by the ministry; and now they propose even less than that for 2014,' said Madekhan.
Ideally, he added, given the length of roads in East Java and standard road-maintenance costs, the administration should allocate a minimum budget of Rp 850 billion for road maintenance, including different modes of transportation.
FITRA, according to Madekhan, would continue to oversee East Java's spending allocations for infrastructure.
'The funds are at risk of being misappropriated. They may be used for campaigning in the 2014 election year,' he said.
The limited budget for roadwork and bridge constructions was also criticized by the dean of Brawijaya University's school of economics, Maryunani.
He said cities in China, Japan and South Korea, for example, were equipped with special roads for cargo, private cars and public transportation vehicles. Their governments imposed taxes based on what was being transported.
'If East Java wishes to attract foreign investment, there is no option other than to improve the condition of the roads,' Maryunani said.
Ironically, excesses can been seen in the grant funding, which amount to around Rp 4 trillion for 2014. East Java legislative councilor Saleh Ismail Mukadar has also focused on the matter.
He explained the funds would later be managed by agencies or working units within the provincial administration as social assistance funds, whereas in fact the funds were ambiguous.
Saleh suggested the administration should reallocate Rp 3 trillion of the Rp 4 trillion in grant funds to complete the Southern Ring Road in order to improve the economy for the 14 million residents living in the southern part of the province.
