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An Overdue Warning on Misuse of Budgets
August 06, 2010

Regional governments can be important partners in national development. But they need to accept their responsibilities and fulfill the aspirations of those who elected them. Regional governments can be important partners in national development. But they need to accept their responsibilities and fulfill the aspirations of those who elected them.
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Asoegenie
4:53am Aug 6, 2010

I agree with you, @peterR ....too little, too late.

peterR
2:25am Aug 6, 2010

The words Horse; Door; Close; After; Bolted come to mind.

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President Susilo Bambang Yudhoyono has issued the strongest warning to date against the increasing abuse of central and provincial budgets by regional politicians.

Yesterday, the president gathered his ministers, governors and provincial legislative heads in Bogor in the third such event since he reassumed the presidency for a second term, and told them in no uncertain terms that he will not tolerate any misuse of national and regional budgets.

In his opening speech at the two-day meeting at the Bogor Palace, Yudhoyono warned that all budget usage would be evaluated by the government, mainly by the Presidential Working Unit for Supervision and Control (UKP4), and would be open for public scrutiny. Such transparency is long overdue and much needed.

The meeting focused on four topics — the macro economy, the state budget, regional budgets and budget acceleration. These are critical in accelerating economic growth and we applaud the president for displaying leadership on these issues.

Sadly, both the central and local legislators seem to have lost their way, using state funds for frivolous projects — often in the face of widespread public objection — instead of building infrastructure that will improve the lives of the people.

The state audit board recently found that most regional budgets have not been used to try to increase prosperity among the people, but rather to cater to the desires of officials for personal housing, offices and vehicles.

And the country has seen a steady stream of regional officials and legislators being dragged to justice, facing corruption charges linked to the misuse of budgets.

It is vitally important for the government at all levels to exercise fiscal discipline.

Understanding and the proper management of state budgets are important tools of economic growth and the enhancement of the quality of life across the country.

If used prudently and with maximum effect, state funds can drive growth and development across Indonesia, especially in rural and less-developed regions.

Such funds should be used to build roads, bridges, irrigation channels, schools, hospitals, ports, power plants and train stations.

They should be wisely used to fund projects that would benefit the people and help empower them, instead of being squandered on vanity projects.

Regional governments can be important partners in national development.

But they need to accept their responsibilities and fulfill the aspirations of those who elected them.

The president also asked his ministers and local administrations to react quickly to any abnormal hike in the price of essentials in the run-up to the Ramadan fasting month, a season traditionally marked by high consumption and skyrocketing prices.

One of the essences of good government is a synergy between the central government and regional administrations.

The two-day forum initiated by the president is an important start to this process.