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SOEs Ministry asks House to approve budget cut
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The House of Representatives budgetary body holds a meeting on Monday in Jakarta. (thejakartapost.com/Sepsha Dewi R.)
T
he State-Owned Enterprises (SOE) Ministry has asked for approval from the House of Representatives to cut its allocation by Rp 95.08 billion (US$71 billion) in the revised 2016 state budget.
Finance Minister Bambang Brodjonegoro said the SOEs minister had made significant savings by cutting consultant fees and training costs. However, the cut is subject to House approval.
Among eight departments in the ministry, the department of agriculture and pharmaceutical industries scored the biggest cut, of 85 percent. Among the savings was Rp 12 billion in consultant fees.
"The 2016 indicative ceiling for the SOEs Ministry is set at Rp 243.87 billion, 70.7 percent of the initial ceiling in the 2016 state budget worth Rp 354 billion," Bambang said in Jakarta on Thursday.
However, budget absorption in the SOEs Ministry until May was relatively low, at 14.69 percent. SOEs Ministry secretary Iman Aprianto Putro underlined that the sluggish absorption was not due to the frozen state capital injection (PMN).
"No, it was not because of the PMN because that’s an unrelated allocation. The slow absorption was merely caused by the cash flow cycle [which usually slows in the first months of the year and accelerates by year-end]," he told thejakartapost.com. (ags)
