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Transportation Ministry spends 82.6 percent of its budget
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People wait for trains on the platform at Manggarai Station in South Jakarta. (Antara/Yudhi Mahatma)
T
ransportation Ministry secretary-general Sugihardjo said on Tuesday that the ministry was not able to fulfill its spending target last year due to the failure of land procurement for railway projects.
Sugihardjo said the year-end figure of the budget spending stood at 82.6 percent of the Rp 38.4 trillion (US$2.8 billion) allocation, lower than the spending target of 85 percent.
“The average spending of the directorate generals is between 89 and 94 percent. However, the Directorate General for Railway only managed to disburse 60.6 percent of their budget,” he said on Tuesday.
The Directorate General for Railway received Rp 9.6 trillion, the highest figure in the ministry.
(Read also: Manggarai station tunnel to be completed in November)
He said the slow disbursement in the railway sector was due to land procurement problems for several projects, including the double-track project in Manggarai, Jakarta, as well as the slow multi-year contract agreement.
The ministry also revealed that it had foreseen the lagging progress of several railway projects, but was unable to cut the budget in the 2016 state budget revision, as the fund was sourced from state sharia securities (SBSN).
This year, the ministry has been allocated Rp 45.98 trillion in the state budget. “I hope it can reach past 90 percent,” Sugihardjo said. (bbn)
