VIVAnews - Finance Ministry Directorate General of Financial Balance noted that within the third quarter, up to Monday, November 17, 2009, there are about 100 areas in Indonesia that are still unable to absorb the special allocation fund (DAK) stage two and three in 2009. As a result, they are subjected to possible budget cut in the next DAK allocation.
However, Director General of Financial Balance Mardiasmo said before imposing the sanction his team would first summon the leaders of the 100 areas. “We’ll invite them first. I want to figure the causes out,” he said at the Finance Department office on Tuesday, November 17.
Mardiasmo also reminded that although the end of the year is approaching and the closing will take place on December 21, 2009, the government would still tolerate the excuses.
The delay in the fund absorption may be caused by the remoteness of areas like Papua, late procurement or natural disasters like the recent Padang earthquake.
“There are some tolerable excuses and some intolerable ones. We’ll see about that,” Mardiasmo said.
According to the record of Directorate General up until November 16, 2009, the distribution of DAK to several areas has reached up to 77.89 percent out of the 2009 State Budget target of Rp 19.33 trillion.
In the first stage, the allocation absorption climbed up to Rp 7.44 trillion or 100 percent for 506 areas. During the second stage, the absorption was 90.95 percent or Rp 10.157 trillion for 442 areas while in the third stage of distribution, the absorption was only 27.84 percent or Rp 1.73 trillion for 124 areas.
The special allocated funds (DAK) were included by the government in the State Budget to be given to the areas with fiscal capacity below national standard.
DAK were handed out in three stages in order to diminish the gap between regions in Indonesia. But, according to the State Budget law, areas that are unable to 100 percent absorb DAK in the previous stage will have their DAK quota in the next stage cut.
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Translated by: Nataya Ermanti
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