MINISTER OF PUBLIC WORKS OPTIMISTIC BUDGET WOULD BE WELL ABSORBED

The Minister of Public Works, Joko Kirmanto, was optimistic that budget absorption in his Minis­try would reach 95% till end of 2012 although by end of Novem­ber it was only pasted at 50%. “Yesterday     we have calculated all contracts and we feel confident the budget utiliza­tion was 95%.” Djoko remarked during interval of commemoration of Space Day 2012 last weekend in Jakarta.

The Minister's optimism was based on the target set by every Directorate General in the Min­istry of Public Works, where the Director General of Cipta Karya set target of 99%, the Director General of Bina Marga around 90% so by average the poten­tial absorption would be in the range of 95% - 96%.

Dioko himself admitted the slow absorption of budget in his Ministry in 2012. The cause was additional amount fro carry over (SAL) amounting to Rp 13 trillion. “In fact the absorption of basic budget in APBN is progressing well, but there was carry over of SAL amounting to Rp 13 trillion in October which was unspent.” Djoko explained.

However, in spite of additional budget originating from carry over (SAL) which only came by in Oc­tober, Djoko was optimist that the 95% target could he realis­tically attained. Tender of projects had started since November. “I am hopeful we can. Let’s just see how many percent it would be in December. But my colleagues assured it would be 95%, such is reasonable” he said.

Up to November there was 35,000 task forces recorded. Of that number 15 units had been auc­tioned. One unit of Sacker formed several Commitment Maker Officials (PPK). One PPK could handle two to six contracts, so there were many contracts which were already built.  

Business News - November 19, 2012