Government Demanded to Improve the Quality of APBN 2018 Budget Allocation

By : Wiyanto Dan Aldo Bella Putra | Friday, August 18 2017 - 18:06 IWST

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INDUSTRY.co.id - Jakarta -The government is encouraged to increase the quality of massive capital expenditure in sectors that cannot be financed by the private sector. It is unfortunate that the State Budget (APBN) of its spending is channeled to State-Owned Enterprises (BUMN) in the form of State Investment (PMN).

According to Enny Sri Hartati, Director of the Institute for Development of Economics and Finance (INDEF) in Jakarta, Friday (18/8/2017).

Government injects funds to BUMN for infrastructure development, selected which is more important. If infrastructure is outside Java, it does not matter, so the private sector is not interested in investing there.

"I think fast train, baseball do not use APBN, infrastructure in Java is also baseball business use APBN, but for 3000 watt electricity may use APBN, there must be quality of APBN fund allocation," said Enny Sri Hartati.

On the macro assumption of the Draft State Budget 2018, the government plans to raise the social protection program from 6 million to 10 million. The expansion of non-cash food aid from the poor, health services 92.4 million people.

Construction of 856 km of roads, agriculture in the form of increased food production and construction of facilities and infrastructure, the development of horticulture and others.

"Where allocations are improved, SOEs should not be pampered with the state budget should there be improvement and fiscal decentralization," she said.

So that fixed allocation of the APBN will reduce the deficit gap. But if not quality of APBN allocation, still gap deficit will be wide whereas the Act limits the maximum 3%. "I am sure the debt will be swollen, the deficit may not be Rp78 trillion, but now it is close to Rp400 trillion," she said.

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