Indonesia Govt to Evaluate 2011 Budgets

SBY PRESIDENCY

The government will make a budgetary evaluation of the ministries and state institutions in every quarter of the 2011 State Budget for smooth and efficient budgetary spending.

"The evaluation will be carried out in each quarter starting next week, because the first, second, third and fourth quarters need to be proportional, not as now 40 percent in the fourth quarter," Economic Affairs Coordinating Minister Hatta Rajasa said in Jakarta Wednesday.

He hoped that in 2011, budget absorption could become quicker because the government had revised presidential regulation 80 of 2003 into presidential degree 54 of 2010 on the procurement of goods and services, so that tender could be carried out prior to the current budget year.

"After we have designed development projects, we will accelerate the tender process, under a call from the President who said explicitly for an accelerated tender process," he said. Hatta also said that not only to accelerate the tender process, the government will also accelerate the collection of budgets.

"Payments are often still facing a miss match, with the project already progressing 80 percent but collection still only 60-65 pct, and the funds which cannot be distributed to the general public hampered growth," he said.

Hatta stated that an improved budgetary absorption would encourage growth in 2010 to reach a minimum of 6 percent as the investment and export indicators increased without signs of weakenings compared to the third quarter.

"What caused the weakening of the third quarter is the negative spending compared to the third quarter of 2009," Hatta said. With regard to the presidential instruction to reduce the budget, Hatta said it has already been discussed and now it is being handled by the cabinet secretary.

According to the finance ministry, the state’s budget up to December 23, 2010 reached Rp936.2 trillion, or 83.1 percent, and by the end of the year it may reach Rp1.079 trillion, or 95.9 percent.

"There are some 11,600 payment orders (SPM) worth Rp38 trillion, so that by the end of the year it will reach 95.9 pct," Finance Minister Agus Martowardojo said.

In the meantime, the budgets of ministries/state institutions reached Rp305.3 trillion, or 83.4 percent, and by the end of the year reached 93.6 percent.

• KOMPAS

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