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Jakarta Post

Jakarta unlikely to utilize budget effectively: Indef 

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, June 22, 2018   /   08:02 am
Jakarta unlikely to utilize budget effectively: Indef  Jakarta Governor Anies Baswedan walks past City Council members on Nov. 15, 2017 after giving a speech on Jakarta's draft budget and his vision and mission for his governorship. (JP/Seto Wardhana.)

The Jakarta administration is likely to fail to utilize the city's budget effectively this year given low absorption as of the middle of the year, the Institute for Development of Economics and Finance (Indef) has said. 

As of June, the city administration has only absorbed 24 percent of the city's budget. 

Indef economist Bhima Yudhistira said poor absorption would have a negative impact on the city's economy.

Bhima said poor absorption was partly down to the fact that Jakarta Governor Anies Baswedan and Deputy Governor Sandiaga Uno were still adjusting to their responsibilities. 

Anies and Sandiaga have only led the capital for less than a year, he said. 

"There were challenges at the planning and technical level," Bhima said on Wednesday as quoted by tempo.co. 

Bhima said the city administration should be more realistic in planning the budget and programs next year. 

City agencies should accelerate spending, he added.

Sandiaga earlier said the city administration would improve how it plans the budget for the following year.

As an example, low absorption was partly down to land acquisition disputes, he said. 

He went on to say the city administration would avoid larger absorption at the end of the year as what often happened in the previous administration. (cal)