Indonesia Energy Ministry expedites budget allocation 2017 implementation

Indonesia Energy Ministry expedites budget allocation 2017 implementation

Minister Ignasius Jonan. (ANTARA/Akbar Nugroho Gumay )

The budget should really be used to finance programs that have been made carefully."
Jakarta (ANTARA News) - The Ministry of Energy and Mineral Resources (ESDM) is speeding up the implementation of its Development Budget Allocation List (DIPA) for 2017 so that it can expedite its work program.

"In the implementation of the State Budget (APBN), the president gave his directives that quality must be improved, it should be done on time and the results should be directly or indirectly felt by the people," ESDM Minister Ignasius Jonan said in a press statement made available to ANTARA News here on Friday.

The ministry was allocated DIPA amounting to Rp7.03 trillion, which will be used to finance 12 programs in 11 units and 30 working units within the ESDM organization as stipulated in the DIPA.

"The budget should really be used to finance programs that have been made carefully," Jonan said.

"The president wants the implementation of the DIPA, based on regulations, carried out as soon as possible. Therefore, we began project auctions three weeks ago," the minister said.

The ESDM ministry had announced project auctions in three phases during November and December 2016 for 53 packages worth Rp324 billion.

It plans to sign the first contract in January 2017.

President Jokowi handed over the DIPA for 2017 to the relevant ministries, institutions, and provincial offices at the State Palace on Wednesday.

"The handing over of the DIPA 2017 is the initial process in the implementation of Law No. 18/2016 on State Budget 2017," Finance Minister Sri Mulyani Indrawati said at the function, which was also attended by Vice President M. Jusuf Kalla.

DIPA is a document that outlines the distribution of the state budget, and serves as the basis for state expenditure and fundraising, and as documented support for the governments accounting activities.

The DIPA for each year is handed out well in advance so that disbursements from the budget to the central and regional governments can begin early and provide greater benefits to the people.

In the State Budget 2017, the state revenue has been set at Rp1.75 quadrillion and state expenditure at Rp2.08 quadrillion.

Of the state expenditure, the president handed over 20,646 DIPA lists to 87 ministries/state institutions, worth Rp763.6 trillion (36.7 percent).

The DIPA lists for regional and village funds transfer amounted to Rp764.9 trillion (36.8 percent) and that for the State Treasurer to Rp552 trillion (26.5 percent).

The allocation for ministries/state institutions is focused on financing priority programs, particularly infrastructure and connectivity, improving the quality and effectiveness of social protection programs (KP, KIS, and PKH), and strengthening defense and security to support national stability.

Priority programs also included education, with an allocation of 20 percent of the state budget, and health, with an allocation of five percent of the state budget.

The large fund transfer to various regions indicated the governments commitment to adopting decentralization programs and developing the countrys border areas based on its Nawa Cita development priority program.

Thus, regional governments are expected to use the funds properly and effectively.

With DIPA 2017 handed out, ministries/state institutions and regional governments are expected to implement the state/regional budget as soon as possible in a transparent and accountable manner based on the directives of the president.