BPKD Predicts the 2014 APBD Absorption Just 40 Percent

Head of Jakarta Finance Management Board (BPKD), Heru Budi Hartono, predicts that the 2014 City Budget (APBD) absorption is just 40 percent until the end of year. One of the problems that causes low budget absorption is the transition of goods and services procurement through Jakarta Procurement Goods and Services Unit (ULP) as well as e-budgeting system.

This is the lowest budget absorption ever

According to Hartono, budget absorption until Monday (11/10) was only 31 percent of total budget Rp 72.9 trillion. From that amount, the biggest budget absorption is for routine spending like employee salary as well as telephone, water, electricity, and internet bills payment.

“The highest budget absorption until this end of year is probably 35-40 percent, I’m optimistic. This is the lowest budget absorption ever. Usually, it was around 60 percent, even during the crisis in year 2000. There are many transitions this year, so please forgive,” he stated, Monday (11/17).

The Amount of the 2015 APBD Deemed Realistic

As for the regional work unit (SKPD) which budget absorption is the lowest, Hartono disclosed that it is Jakarta Transportation Department which only absorbed 4.7 percent of the 2014 APBD. This low budget absorption happens because of the budget misuse of TransJakarta bus procurement in year 2013 budget.

In this case, Acting Jakarta Governor Basuki Tjahaja Purnama decided to erase the budget for the procurement of TransJakarta bus and medium-sized bus worth Rp 3.2 trillion in the 2014 APBD. Initially, the budget would be spent to purchase 1,000 TransJakarta bus and 3,000 medium-sized buses.

The second SKPD with lowest budget absorption is Jakarta Public Works Department which only absorbs 13 percent of Rp 6.29 trillion. From that amount, Rp 6.156 trillion was used for direct expense.

“Jakarta Public Works Department has problem in land acquisition. Reservoir dredging keeps running, including the JEDI, but has not paid yet. Maybe the budget surplus (silpa) is around Rp 15 trillion,” uttered Hartono.

As for SKPDs with highest budget absorption, they are Jakarta Education Department and Jakarta Health Department. Particularly for Jakarta Education Department, its budget absorption reaches 56 percent of Rp 13 trillion. These SKPDs absorbed a lot because their programs include indirect expenses, such as Jakarta Smart Card (KJP) and Jakarta Health Card (KJS).