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Ministries need more funds in 2016 for infrastructure projects

Two ministries dealing with infrastructure development called for greater funding during a hearing with the House of Representatives on Wednesday, saying the budget allocation for 2016 would not be sufficient for their programs

Nadya Natahadibrata (The Jakarta Post)
Jakarta
Thu, June 11, 2015

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Ministries need more funds in 2016 for infrastructure projects

T

wo ministries dealing with infrastructure development called for greater funding during a hearing with the House of Representatives on Wednesday, saying the budget allocation for 2016 would not be sufficient for their programs.

Public Works and Public Housing Minister Basuki Hadimuljono said the 2016 budget allocation for the ministry proposed by the Finance Ministry would not be enough to finance infrastructure projects stipulated in the 2015-2019 National Mid-Term Development Plan (RPJMN).

Basuki said his ministry would require a total of Rp 178.2 trillion (US$13.5 billion) next year to carry out the development plan, otherwise the ministry would not be able to construct several dams and irrigation systems to support the government'€™s food self-sufficiency target.

'€œFor the proposed 2016 state budget, we recommend a total budget of Rp 126 trillion, up from the previous proposal of Rp 102.5 trillion, as we need to complete several multi-year projects and we also need around
Rp 15 trillion for new projects,'€ Basuki said during the hearing .

The ministry is planning to begin the construction of eight dams next year in Ciawi, West Java with an investment of Rp 1.69 trillion; Sukamahi, also in West Java (Rp 1.1 trillion); Kolhua in East Nusa Tenggara (Rp 569 billion); Rukoh in Aceh (Rp 553 billion); Kuil in North Sulawesi (Rp 1.5 trillion); Sukoharjo in Lampung (Rp 1 trillion); Cipanas in West Java (Rp 2.1 trillion) and Sindangheula in Banten (Rp 496 billion).

'€œWe will continue to focus on completing projects that support the government'€™s food self-sufficiency program and may postpone projects that are not related to the government'€™s priority programs if the budget allocation is less than what we have proposed,'€ he said.

Legislators from House'€™s Commission V overseeing infrastructure and transportation, however, questioned the ministry'€™s ability to absorb the budget as well as the significance of the higher budget proposal in helping to boost economic growth.

'€œHow much can the ministry spend of this year'€™s state budget? Before deciding on next year'€™s budget we have to first evaluate this year'€™s performance,'€ legislator Novita Wijayanti said.

Meanwhile, Commission V deputy chairman Muhidin Mohamad Said said the budget should be disbursed equally to finance infrastructure projects across the country in order to fully boost the country'€™s economic growth.

As of June 9, the ministry had spent almost 10 percent of the allocated 2015 state budget, which amounts to Rp 118 trillion. The ministry aims at spending the remaining 90 percent by the end of this year.

Meanwhile, Transportation Minister Ignasius Jonan said the total budget needed in 2016 to continue the National Development Planning Board'€™s (Bappenas) strategic plan would reach Rp 105 trillion. But, the Finance Ministry proposed only Rp 55.2 trillion for the Transportation Ministry.

During the hearing, Jonan also asked for an additional Rp 33 trillion, most of which would be allocated to the directorate general for rail transportation.

'€œWe are planning to begin the construction of the Trans Sumatra railway next year. Therefore, we will allocate most of the budget for railway transportation,'€ Jonan said, adding that the ministry was currently completing studies for the project.

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