Rp900 Billion for Sidoarjo Infrastructure Repairs

Thursday, 12 July, 2007 | 16:27 WIB

TEMPO Interactive, Jakarta: The government has officially proposed the budget for repairing infrastructure ruined by the Lapindo hot mudflows to be Rp900 billion.

The statement was included in the 2007 Revised State Budget Draft and the posts will be the Public Works Department and Transportation Department’s expenditure.

Anggito Abimanyu, Head of Fiscal Policy at Finance Department, explained that such amount of budget was resulted from the estimation of road and railway infrastructure repairs needed.

“Our capability this year is now only Rp900 billion,” he said after a working meeting with the Budget Committee on 2007 Revised State Budget Draft at the Parliament Complex, Jakarta, Tuesday night (11/7).

He acknowledged that actually the need of infrastructure rehabilitation was much higher than Rp900 billion.

“But this is to be discussed later,” said Anggito.

In the 2007 Revised State Budget Draft, he said, for handling the damage due to Lapindo mudflow, the proposal was combined with the Public Works Department’s and Transportation Department’s infrastructure repair program.

The amount of the two departments’ needs totals Rp5 trillion.

The consideration for granting the funds, said Anggito, refers to the aspect of respective regional economic interests.

This is because infrastructure is a vital matter as regards regional economic support.

“For Lapindo (case), this is special for infrastructure. For the others, there’s none,” he said.

Finance Minister Sri Mulyani Indrawati said the funds for infrastructure rehabilitation due to the Lapindo mudflows is what caused the 2007 budget’s deficit to soar from Rp40.5 trillion, or from 1.1 percent of Gross Domestic Product (GDP) to Rp62 trillion or 1.6 percent of GDP.

“Infrastructure repairs in Sidoarjo are very urgent for moving the economy so the allocation must be included in the 2007 Revised State Budget Draft,” she said.

Infrastructure repairs in Sidoarjo include the Porong-Gempol toll road, non-toll artery roads and railways.

Anton Aprianto | Rieka Rahadiana