Jakarta (ANTARA News) - A finance ministry official said government capital spending in 2012 would be directed mostly for basic infrastructure development projects.

"Especially infrastructure projects of the ministry of public works such as road, bridge, irrigation network, airport and seaport development projects," the director general of budget affairs, Herry Purnomo, said here on Monday.

He said allocation of capital spending would also be done to eradicate obstacles and improve domestic connectivity.

"It also includes projects in the MP3EI, projects financed by the government to increase inter-regional connectivity," he said.

He said the capital spending would also be aimed at improving the capability of national defense with regard to building a national defense system and supporting funding for multi-year activities.

Other targets include increasing the capacity of mitigation and adaptation to the negative impact of climate change and readiness for dealing with natural disasters, he said.

The allocation of capital spending in the 2012 budget is expected to reach Rp168.1 trillion or 2.1 percent of the country`s gross domestic product, he said.

The total is an increase of Rp27.2 trillion or 19.3 percent from this year which was set at Rp141 trillion or 2.0 percent of the GDP.

Until December 1, 2011 however capital spending had reached only 51.3 percent or Rp72.3 trillion.

Finance Minister Agus Martowardojo has ordered ministries to increase their quality of planning and budgeting as well as competency in absorbing capital so that they would not be easily involved in conflict of interests.

"Our challenge is increasing competency because the volume of capital is increasing. Carelessness could make officials involved in a conflict of interest be used," he said.
(Uu.H-YH/HAJM/S012)

Editor: Priyambodo RH
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