T

he Jakarta administration has proposed a revision of three bylaws regarding the 2014 city budget, the government investment participation (PMP) in city-owned property company PT Jakarta Propertindo (Jakpro) and the PMP in city owned market operator PD Pasar Jaya.

Acting Jakarta governor Basuki '€œAhok'€ Tjahaja Purnama said during a plenary meeting of the City Council on Friday that the executive proposed the 2014 revised budget draft to Rp 72.9 trillion (US$6.28 billion), which was an increase of 1.26 percent of the total of the initial city budget, worth Rp 72 trillion.

Ahok said the increase would be used to allow the city to increase its PMP in city-owned enterprises by Rp 1.45 trillion.

The enterprises included Jakpro, sewage firm PD PAL Jaya, property developer PT Pembangunan Sarana Jaya and Pasar Jaya.

'€œWe previously planned to give initial capital of Rp 7.11 trillion to the firms but we revised it to Rp 8.56 trillion,'€ he said.

Many programs have been canceled in the first half of the city administration'€™s fiscal year due to various reasons, including the inability of agencies and working units to carry out big projects.

The programs include the Transportation Agency'€™s bus procurement project, worth Rp 3.2 trillion, and the Industry and Energy Agency'€™s gas station and mobile refueling unit construction, worth Rp 610 billion.

Ahok said the city then decided to give the budget to the enterprises.

The city administration says the step was an emergency to raise budget absorption, which so far has only reached 21 percent.

Ahok said the local revenue of the city administration was also predicted to increase by 0.5 percent, from the previous level of Rp 39.56 trillion to Rp 39.76 trillion.

'€œThe local revenue will be generated from taxes, fees and the income from managing local wealth,'€ he said.

Meanwhile, in the revision of Bylaw No. 12/2004 on PMP in Jakpro, the enterprise, which previously received Rp 2 trillion of PMP in 2013, would receive additional initial capital, worth Rp 8 trillion.

'€œThe capital is aimed at the long term development plan of Jakpro in supporting the city'€™s programs in property, infrastructure and utilities,'€ Ahok said.

As one of the biggest city-owned companies, Jakpro is tasked with many large projects, including building water treatment plants, liquefied natural gas (LNG) stations for Transjakarta buses and the construction of low-cost
apartments.

Jakpro president director Budi Karya Sumadi said his company would also be involved in projects like electronic road pricing (ERP), toll roads and a power plant.

Jakarta Development Planning Board (Bappeda) head Andi Baso Mappapoleonro previously said the firm was deemed more capable of running big projects as it was more flexible in terms of financial matters.

Pasar Jaya will also get a big chunk of initial capital, an increase from Rp 500 billion in 2009 to Rp 5 trillion.

'€œThe initial capital is needed as the market operator is tasked with building traditional markets integrated with low-cost apartments and maintaining the food supply,'€ he said.

Pasar Jaya president director Djangga Lubis said his company would receive Rp 170 billion in the first phase.

'€œWe will use it to build five traditional markets,'€ he said.