Budget priorities and the preliminary threshold (KUA-PPAS) serve as a guideline for annual budget deliberations.

The proposed amount is higher than this year’s city budget of Rp 89 trillion.

Jakarta Governor Anies Baswedan said the increase was based his administration’s targets as outlined in the city medium-term regional development plan (RPJMD).

“The targets in the RPJMD reflect our planned development targets for 2020,” he told reporters at City Hall on Thursday.

The governor recently issued a gubernatorial decree on regional strategic programs to add 13 issues to the current 60.

These include air pollution control, improved facilities for pedestrians, climate disaster mitigation and adaptation and development of tourist destinations.

The proposed budget threshold summarizes city programs laid out for next year, with the highest spending going to the rehabilitation of school buildings, the city’s health insurance scheme, welfare improvement for noncivil servant teachers working in state schools and developing 20 kilometers of sidewalks across Jakarta.

Land acquisition for green open spaces, the second phase of MRT Jakarta, water management agency-related programs, as well as Bina Marga road agency-related programs are also included.

Jakarta Development Planning Board (Bappeda) head Sri Mahendra Satria Wirawan explained that the city administration sought to boost its regional income to Rp 87 billion, an increase of 16.6 percent from this year’s Rp 74.7 billion.

With spending at Rp 84.2 trillion, the city is aiming to earn a Rp 3 trillion surplus that can be allocated as a capital injection for seven city-owned companies at a total proposed budget of Rp 11.7 trillion.

The proposed capital injection includes Rp 4.3 trillion for city-owned developer PT Jakarta Propertindo (Jakpro) to handle projects such as the BMW Stadium in North Jakarta, revitalization of Taman Ismail Marzuki (TIM) arts center in Central Jakarta, Phase 2 of the LRT Jakarta and the planned Formula E race for electric cars.

The operator of the country’s first subway system, PT MRT Jakarta, proposed a Rp 2.6 trillion capital injection, mainly for the construction of the second phase of the MRT.

City-owned water operator PAM Jaya proposed a Rp 1.7 trillion capital injection to expand its drinking water supply system (SPAM) and piping network, relocate the Cilandak water network, as well as to improve the distribution of pipes for Phase I of the Jatiluhur network.

Meanwhile, PT Pembangunan Sarana Jaya proposed Rp 1 trillion to acquire land for the city’s flagship zero-down-payment housing programs in North Jakarta and East Jakarta.

City Secretary Saefullah said the threshold was not final and was still subject to change as it was currently being discussed by the city administration and councillors.

City Council Speaker Prasetyo Edi Marsudi from the Indonesian Democratic Party of Struggle (PDI-P) warned city officials to be more attentive in drawing up the draft budget.

“The city administration should optimize the budget. [...] Do not let such a large amount of money become unused funds,” he said.

The city administration accumulated unused funds (silpa) totaling Rp 12.17 trillion last year, the highest on a national scale and indicating a slow disbursement of the budget. It only used 82 percent of its budget in 2018.

The city has so far disbursed 40.9 percent of its budget as of Thursday, according to monitoring and evaluation website publik.bapedadki.net.

The deliberation of budget thresholds started on Wednesday, right after both parties deliberated this year’s budget revision and less than two weeks before the end of the councillors’ current term.

The City Council officially approved a 2.37 percent decrease in this year’s budget from Rp 89 trillion to Rp 86.89 trillion.

Newly elected councillors set to serve the 2019-2023 term will be inaugurated on Aug. 26. (nal)

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