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Government has not found funds for land certification
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Coordinating Economic Minister Darmin Nasution and Agrarian and Spatial Planning Minister Sofyan Djalil talk after attending a limited Cabinet meeting at the Presidential Office in Jakarta. (Antara/Wahyu Putro A)
T
he government does not know how to pay for its ambitious land certification program as the Finance Ministry has not decided on a scheme to cover a funding shortfall, although the Agrarian and Spatial Planning Ministry wants the money to be disbursed this month.
The ministry’s budgetary director general Askolani said his office was still pondering over which scheme would be used.
“The government may use the funds [reserved] for urgent needs, which was allocated to finance urgent activities,” Askolani as reported by kontan.co.id on Tuesday, adding that the funds had been allocated in the 2017 State Budget.
(Read also: Government certifies only 1 million plots of land as of May)
In the state budget, the government allocated a Rp 9.3 trillion (US$699.46 million) reserve fund that could be used to anticipate, for example, price changes, budgetary controls, oil lifting and other changes of policies.
He, however, said the ministry needed to review whether the land certification program could be financed with the reserve fund.
He stressed it was the right of Finance Minister Sri Mulyani to make the decision.
The state budget allocated Rp 1.4 trillion for land certification, which is enough for certifying 2 million plots of land. However, President Joko “Jokowi” Widodo insisted that the government had to certify 5 million plots of land this year.
For that, the Agrarian and Spatial Planning Ministry needs another Rp 1.4 trillion to certify another 3 million plots of land. (bbn)
