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Finance Ministry to cut SOEs Ministry budget to Rp 160b
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The State-Owned Enterprises Ministry on Jl. Medan Merdeka Selatan in Central Jakarta. (bumn.go.id/-)
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s part of the second round of budget cuts, the Finance Ministry will cut the State-Owned Enterprises (SOEs) Ministry’s budget from the initial Rp 243.85 billion (US$18.06 million) to around Rp 160 billion, Finance Minister Sri Mulyani Indrawati said Wednesday.
During a meeting with House of Representatives Commission VI overseeing trade, industry, investment, cooperatives, small and medium businesses and state-owned companies, Sri Mulyani explained that in 2015, the realized budget of the SOEs Ministry amounted to Rp 124.75 billion, 84.25 percent of the initial budget.
“In 2016, the budget allocation is Rp 243.85 billion. Given the budget realization in 2015 and self-blocking (voluntary austerity measures) in 2016, we estimate the realization will be around Rp 160 billion. The Rp 243 billion budget is quite huge, so I will cut it myself," said Sri Mulyani, who replaced SOEs Minister Rini Soemarno in the meeting.
In order to secure the implementation of the 2016 state budget, the Finance Ministry has decided to trim Rp 64.7 trillion from the budgets of ministries and institutions. The ministries and institutions set to receive the biggest cuts are the Defense Ministry, Public Works and Public Housing Ministry, Agriculture Ministry, Health Ministry, Transportation Ministry, Education and Culture Ministry, Finance Ministry, Maritime Affairs and Fisheries Ministry and National Police.
Earlier, the House's special inquiry committee demanded Rini be removed from her position on account of her mismanagement of state-owned seaport operator Pelindo II. (evi)
