The City Council of Jakarta (DPRD DKI), to this day, have not yet approved the capital city’s budget (APBD). DPRD DKI have blamed lack coordination on the part of the Jakarta Government (Pemprov DKI) for the delay. Pemprov DKI have more or less given up on trying to explain why DPRD DKI is taking its time. Whatever the real reason may be, DPRD DKI should be ashamed of themselves for not being able to pass the budget when it was supposed to be passed November last year. We heard that DPRD DKI could sign off on the 2014 APBD tomorrow (Wednesday Jan. 22) but then again, the Chairman of DPRD DKI, Ferrial Sofyan, was quoted in the media stating that he and his colleagues may decide to, yet again, postpone the passage of the budget until February. Madness!
The discussion of Jakarta’s 2014 draft budget (RAPBD) between Pemprov DKI and DPRD DKI is a perfect example how the difference of political affiliations (and/or interests) can hamper developments. the Jakarta’s 2014 RAPBD should have been passed on Nov. 30, 2013. But the DPRD has effectively blocked the passage of the bill. We’ve talked about the reason why based on information from Pemprov DKI’s senior official in our previous articles. It’s a tug of war with budget allocations. Some members of DPRD DKI want their share of programs, and Pemprov DKI don’t want to compromise on theirs. It’s a standstill.
Jakarta has been hit by severe weather, parts of the city are practically submerged. Roads and pavements in previously flooded areas are full of potholes. The city is in need of major infrastructure upgrade as is, but now, it’s a matter of urgency. Jokowi and his team actually wants to go ahead full-steam in resolving the city’s problems. One only has to look at Jakarta’s 2014 RAPBD. The city is allocating Rp35 trillion or 48.6 percent from the total budget of Rp72 trillion for direct expenditures in, among others, public works and programs in transportation sectors. Jokowi and his Vice Governor Basuki “Ahok” Tjahaja Purnama stated that they’re allocating three times more budget than last year for direct expenditures because they want to go all out in flood mitigation and resolving dreadlocks.
From the Rp35 trillion direct expenditures, the city has allocated (1) Rp1.66 trillion for the acquisition of land in Cengkareng Drain II, Pesanggrahan river, Angke river, and Sunter river; (2) Rp179.20 billion for the construction and the improvement of embankments; (3) Rp140.36 billion for the dredging of rivers, canals, water connections, reservoirs, etc; (4) Rp119.96 billion for the construction of polder system and new water pumps; (5) Rp150 billion for the construction of new embankment near the sea; (6) Rp600.5 billion for the implementation of the Jakarta Emergency Dredging Initiative (JEDI); (7) Rp121.5 billion for the construction of absorption wells and biopores; (8) Rp100 billion for the improvement of river water quality; (9) Rp148.02 billion for the construction of rusunawa (a low-cost rental apartments) for the relocation of residents from the riverbanks; (10) Rp1.19 trillion to develop kampung deret (improved small-housings) along the river in order to provide proper housing and as well to reappropriate the riverbanks; (11) Rp1.13 trillion for the acquisition of land and the development of Ria Rio reservoir; and (12) Rp791.68 billion for the acquisition of land and returning it into open green spaces (RTH) and the city parks.
The city is also projecting a 43.6 percent increase of tax income in 2014 from 22.1 trilion rupiah in previous year to 32.5 trilion rupiah in 2014. In a presentation of the city’s 2013 tax collection held yesterday (Jan. 8) at the City Hall, the head of the city’s tax office reported to Vice Governor Ahok that two of the biggest projected increases of income will come from the collection of property tax and transfer of land and building tax (PBB) and tax on acquisition of land and bulding (BPHTB). As we have reported in our previous article, Pemprov DKI will adjust the sales value of tax object (NJOP) for land beginning February 2014. NJOP for land in various areas of Jakarta will be adjusted 120 percent up to 240 percent higher. According to the head of the Jakarta tax office, the NJOP adjustment is long overdue. Higher NJOP will eventually increase Jakarta’s income from property tax. The move will also impact the tax payment budget of major property companies with assets located in affected areas.
By Haryanto Suharman and Yuventius Nicky
Copying, redistributing, and retransmitting this article is strictly prohibited.
