Jakarta tries to maintain capital injections after ministry rejection
Callistasia Anggun Wijaya
The Jakarta Post
The Jakarta city administration will discuss capital injections for city-owned enterprises that have been dropped by the Home Affairs Ministry from the 2016 city budget, with the hope that the ministry will accept the argument that the allocations should be kept in the city budget.
Jakarta Deputy Governor Djarot Saiful Hidayat said on Friday that the discussion would involve representatives of the City Administration budgetary team, City Council budgetary body (Banggar) and Home Affairs Ministry.
Previously, Home Ministry director general for regional finance Reydonnyzar Donny Moenek said the ministry had dropped the capital injection plans for city-owned lender Bank DKI, slaughterhouse operator PD Dharma Jaya, transportation operator PT Transportasi Jakarta (Transjakarta), market operator PD Pasar Jaya, construction company PT Jakarta Propertindo (Jakpro) and wastewater treatment operator PD PAL Jaya.
Djarot said he had not finished reading the budget revision by the ministry, but he believed that there must be a way for the city administration to maintain the capital injections.
According to Djarot, the ministry had advised the administration to carry out a feasibility study for any investment plan that would need capital injection. Therefore, the deputy governor stressed that his administration had planned to fulfill the ministry's requirements.
He added that he had discussed the issue with the Home Affairs Ministry. 'I told [the ministry's representative] that there are city-owned enterprises that were not solely oriented toward making profits, for example, PT Transjakarta. We have a public social obligation, so we need to subsidize [some companies],' he said at City Hall on Friday.
Trying to thinking positively, Djarot said that further revision of the city budget could be used as a tool for the city administration to use each allocation responsibly.
To answer the ministry's recommendation, for example, Djarot said he had also told PT Dharma Jaya to carry out a feasibility study. According to Djarot, he had met city-owned slaughtering house operator PT Dharma Jaya to discuss the study as it was required to receive the capital injection. (bbn)
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