Wednesday, 3 July 2013

BUDGET ABSORPTION IN GOVERNMENT INSTITUTION STILL LOW



Evaluation of the Presidential Task Unit in Development Control and Supervision (UKP4) noted that budget utilization in State’s ministries/institutions/state’s councils (K/L/LN) today was still low. The habit of spurring on budget at year end was feared to repeat. There were still (K/L/LN) which had just begun to conduct auction early this year. And yet such was an indicator of trend in budget realization. The outcome was detected by Budget Absorption Supervision and Evaluation Team (TEPPA) formed by President Susilo Bambang Yudhoyono. The team consisted of Head of UK4P Kuntoro Mangun Subroto, Deputy Minster of Finance Anny Ratnawaty and Head of The Board of Development and Financial Supervision (BPKP) Mardiasmo.

Head of UKP4 Kuntoro Mangunsubroto in Jakarta on Monday (14/1/2013) disclosed that according to TEPPA evaluation outcome there were some Government institutions which had not or had not begun the process of auction today. Kuntoro disclosed that today there were only 25 institutions whose capability to identify funding package was above 60%. The rest around 37 institutions were not clear about their performance. “The fact that there are procurement process which had not began by early year is a sign of warning, parcitularly in terms of construction package” Kuntoro remarked.

TEPPA also reported that the capability of the Regional Government to absorb budget was extremely low while they showed unsatisfactory reporting system. He saw that there was more and more budget allocated for the provinces, but it seemed that the discipline and capability of the regions were low in absorbing budget, Kuntoro furthermore remarked most of the regional Governments tend to rely on data of procurement service units which only had ready-for-tender package data, and yet in fact procurement must be under one control.

It was said that the reporting system was bad, result of identification of goods and service was low. For that matter Subroto said, the Government needed to build a good reporting system so data of procurement up to the lowest level could be accessed and scattered packages. He showed as an example as integrated monitoring system already operated in the Province of Aceh, but such needed commitment by the regional leaders and there should be no sectoral egotism in trans institutional communications afield.

According to Kuntoro, the management of APBD Regional Budget should be better than before, coordination and communication between the Central and Local Governments must be enhanced to improve regional budgeting management. In addition to that, he was expecting the Regional Government stipulated Provincial Regulations on APBD and APBD-Revised version on January 31 2013 at the latest. Thereby he said, upgrading of regional capacity to scheme up and execute budget could be better than in the years before.

Kuntoro saw that there were some possible reason why the regions did not have good reporting system. It could be carelessness, reluctant to report, or did not know what to report; but indications had it that they were in no position to report as there was no instrument to control budget utilization. To enhance budget absorption in 2013, they would strive that in February 2013 there would be no state of budget being blockaded. “If all goes well at the Ministry, and be improves, blocking must be stopped, never wait for a month” he underscored.

Procurement of goods and services must have controlling instrument. In case of regions, he said, stipulation of the regional must be done on time. Such was important so as funding was down-channeled to the regions they could be used at once. He was again expecting that by no later than January 13, 2013 there would be technical guideline from the Provincial Government, the Ministry of Internal Affairs and the Ministry of Finance. (SS)  


Business News - January 18,2013 

No comments: