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With budget cap set, City Council, administration look to speed up 2020 budget deliberations
Council speaker Prasetyo Edi Marsudi from the Indonesian Democratic Party of Struggle (PDI-P) said the councilors had considered cutting budget allocations for certain sectors.
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Members of Indonesian People's Struggle Union (SPRI) protest in front of the City Council building in Central Jakarta on Nov. 13. They demanded the City Council and the Jakarta administration to focus on people's interests in the deliberation of 2020 city budget following reports of irregular budget allocations. (JP/Syelanita)
T
he Jakarta administration and the City Council have agreed to set next year’s city budget at Rp 87.9 trillion (US$ 6.25 billion), and will speed up deliberations to endorse the budget before year-end after failing to meet the deadline set by the Home Ministry.
The budge priorities and ceiling (KUA-PPAS) for next year was increased by 1.2 percent from this year’s revised budget of Rp 86.89 trillion.
The administration initially proposed a KUA-PPAS of Rp 95 trillion in July to the council. However, deliberations were delayed following the inauguration of new councilors for the 2019 to 2024 term.
The administration proposed a new budget ceiling of Rp 89 trillion in the first budget deliberation meeting in October when the city faced a potential budget deficit.
The city was facing a budget deficit because Rp 6.39 trillion in profit-sharing funds had yet to be disbursed by the central government and because of the administration’s sluggishness in achieving its tax collection target of Rp 44.54 trillion.
Council speaker Prasetyo Edi Marsudi from the Indonesian Democratic Party of Struggle (PDI-P) said the councilors had considered cutting budget allocations for certain sectors.
The proposed budget cuts consist of reducing the capital injection for city-owned developer PT Jakarta Propertindo (Jakpro) from Rp 3.1 trillion to Rp 2.7 trillion. The Rp 400 billion cut involves eliminating the budget allocation to build a five-star hotel as part of the revitalization of the Taman Ismail Marzuki arts and cultural center in Central Jakarta.
