In RAPBN Budget 2013, allocated for grant was projected at Rp 3.6 trillion, which means an increase of Rp 1.8 trillion against budget ceiling for grant of APBN-P State Budger 2012 at Rp 2,8 trillion. The policy of budget allocation to the regions in 2013 was focused on efforts to step up capacity of the Provincial Governments in rendering basic public service in transportation, development of drinking water resource system, water treatment, irrigation, sanitation and geo thermal explorations.
The financial resources for grant were obtained from overseas resources pipelined or conveyed to the recipients, based of the following specification:
a. Grant expenditure originating from Government’s overseas credit allocated for:
(1) The Mass Rapid Transports project amounting to Rp 3.1 trillion obtained from Japan International Corporation Agency (JICA);
(2) Water resource and irrigation Sector Management Project phase II (WISMP) Rp 166.9 billion originating from the World Bank.
b. Grant expenditure originating from Government’s overseas grant, i.e.:
(1) Grant for drinking water amounting to Rp 234.1 billion originating from the Australian Government;
(2) Grant for Water amounting to Rp 9.4 billion originating from the Government of Australia;
(3) Development of Seulawah Agam Geo thermal in NAD province amounting to Rp 6.1 billion originating from the Government of Germany; and
(4) Grant Australia-Indonesia for Sanitation Development amounting to Rp 93.6 billion obtain bed from the Australian Government.
The MRT project was expected to overcome traffic jam in Jakarta and support Jakarta’s economic growth by building efficient urban transportation system, unemployment facilitating and improving environment quality of Jakarta city, and to support mitigation effort as result of anomalous climate.
WISMP-2 had the objective of stepping up performance of water resources management units and rivebanks and management of irrigation and upgrading of irrigation basedfarming productivity in some provinces and regencies.
The Drinking Water Grant and Water Wastage Grant had the objective of financing development projects drinking water pipelining for the low income communities and upgrading of waste water pipelining for the communities in the effort to attain millennium development (MDGs).
Development of Seulawah Agam Geothermal in NAD Province had the objective to finance exploration of geothermal in Seulawah in the province of Nanggroe Aceh Darussalam and employment of expert for the Seulawah Geo thermal team.
The Australia-Indonesia Grant Program for sanitation building was a grant program aimed at accelerating effort in sanitation given to the provincial Government who had masterplan in sanitation.
Business News - December 12, 2012