Jumat, 16 Agustus 2013

GOVT TO BOOST INFRASTRUCTURE DEVELOPMENT IN 2014

By Andi Abdussalam
          Jakarta, Aug 17 (Antara) - The Indonesian government plans to increase its infrastructure development budget to Rp208 trillion in 2014, from Rp180 trillion this year, in an effort to boost the nation's economic growth.
         In addition to setting aside Rp208 trillion for infrastructure projects in the draft 2014 state budget, the government will also make available Rp18.4 trillion, with some Rp11 trillion to be used for infrastructure projects.
        "We are aware of the fact that the development of infrastructure is still far from enough. We often feel this as an impediment in carrying out our socioeconomic programs," President Susilo Bambang Yudhoyono said when delivering the government's financial notes and draft 2014 state budget here on Friday.
         According to Chief Economic Minister Hatta Rajasa, the Rp208 trillion allocation has not yet included regional budget funding for local infrastructure development.  "So, the Rp208 trillion is a state budget for the central government's infrastructure development," he said.
       


  "Next year's Rp208-trillion includes a big budget for infrastructure development, bigger than the budget for the same sector set in 2013," the minister added.
         Additionally, the government has prepared Rp18.4 trillion as fiscal space funds to be used by ministries and state institutions to develop infrastructure facilities.
         Head of the National Development Planning Agency (Bappenas) Armida S Alisjahbana reported that the fiscal space budget in 2014 was set at Rp21.9 trillion.
         "The posture of the 2014 state budget is healthier than that of 2013 because the government has prepared an additional fiscal space of Rp21.9 trillion," she said.
         She noted that the funds designated in the fiscal space were divided into two parts. One part amounted to Rp18.4 trillion, most of which is for ministries and state institutions to develop their infrastructure projects, while the remaining Rp3.5 trillion is for regional budgets.
         "About Rp11 trillion of the Rp18.4 trillion is additional expenditures on infrastructure programs for ministries and state institutions," said Armida.
         Minister Hatta said that the Rp208 trillion would be used to develop basic infrastructure facilities, such as clean water purification and irrigation systems for developing rural areas. "It will also be used to build transportation infrastructure facilities," he added.
         According to President Yudhoyono, in 2014 the government will intensify the development of infrastructure and continue the construction of a number of large scale infrastructure projects across the country which are now underway, including expansion of a number of airports, seaports and their supporting facilities.  "The projects also includes toll roads and double track railways," the President said.
         Yudhoyono noted that the government will continue developing 3,854.3 km of highways in Sumatra, Java, Bali, Kalimantan, Sulawesi, Nusa Tenggara and Papua.
         "We are also building 329.9 km of bridges," the President said.
         Two ministries play very important roles in the construction of infrastructure projects, including the ministry of public works and the ministry of transportation.
         In the draft 2014 state budget, the ministry of public works will receive Rp74.90 trillion, while the ministry of transportation will be allocated Rp39.2 trillion.
         The government set aside Rp74.90 trillion for the public works ministry in 2014 in an effort to boost the development of infrastructure, which often hampers economic development. The large allocation is also intended to build connectivity through the construction of additional roads.
         The ministry of Transportation also received a relatively large allocation of Rp39.2 trillion. It is included in the six ministries which receive large allocations in the draft 2014 state budget.
         These six ministries, as announced by President Yudhoyono on Friday, are the Defense Ministry (Rp83.4 trillion), the Education and Culture Ministry (Rp82.7 trillion), the Public Works Ministry (Rp74.9 trillion), the Religious Affairs Ministry (Rp49.6 trillion), the Ministry of Health (Rp44.9 trillion) and the Ministry of Transportation (Rp39.2 trillion).
         Further, in the draft 2014 state budget announced by the President on Friday, the government set state revenues at Rp1,662.5 trillion and expenditures at Rp1,816.7 trillion, with a deficit of Rp154.2 trillion.
         Earlier, House Speaker Marzuki Alie urged the government to give priority to infrastructure development in the drafting of the state budget in an effort to stimulate Indonesia¿s economic growth.
         "The government must give priority to overcoming infrastructure problems, because infrastructure will have an impact on the whole process of economic growth. Infrastructure problems should be overcome through a comprehensive, coordinated and effective strategy by government agencies," Marzuki Alie said, when opening the House plenary session to hear the President's financial notes address on Friday.
         Marzuki said that, considering the global economic slowdown beginning in 2008, the government should focus on managing the domestic economy by adopting an effective fiscal stimulus.
         He said that the government should also focus its expenditures on productive activities and programs, such as directing capital expenditure to develop infrastructure and boosting the public¿s standards of living through non-energy subsidies.
         In the meantime, economist Enny Sri Hartati of the Institute of Development Economic and Finance (Indef) said  the allocation of  infrastructure development funds is beneficial for improving the lives of people in villages, particularly since the budget that would be use for rural development.
        But the allocation should be distributed transparently, without political considerations, Enny added.  After all, most officials in the ministries came from political parties.
        "We are afraid that infrastructure funding would become a political party funding source. Of course, this is only an opinion and might not always be true," Enny was quoted as saying by  INILAH.COM  online media on Friday.***4***

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