Friday, 19 April 2019 | 10:19 WIB

Saefullah: Several Failed Auction prompts Jakarta’s Low Budget Absorption

Jakarta Regional Secretary Saefullah

JAKARTA, NNC - Jakarta Regional Secretary Saefullah acknowledged the level of absorption of the Jakarta Provincial Government budget that is still relatively low as there were a number of projects that failed in auction.

"There are plenty of obstacles including efficiency, and some (projects) that failed in auction," Saefullah said at Jakarta City Hall on Friday, Nov 9.

Entering the 11 months of Governor Anies' administration, the Jakarta Provincial Government's 2018 Local-Budget only absorbed 53.78 percent of the total IDR75 trillion. The absorbed budget totals IDR40.39 trillion.

Saefullah says auction failure was caused by several factors, such as a contractor that does not meet the qualification requirements in the auction conducted.

"Some were caused by providers, failed auction, and providers unable to provide the specified specifications," Saefullah said.

Saefullah says there has not been a 100 percent budget absorption in each local government work unit (SKPD).

"100 percent would be impossible because there must be a remaining," he said.

The budget absorption can be seen through

In the website, budget absorption is divided into direct expenditure and indirect expenditure. For direct expenditure, the absorption rate is 47.3 percent or IDR19.4 trillion and direct expenditure comprise of purchasing goods and services.

Meanwhile, the absorption of indirect spending reached 61.56 percent or IDr20.98 trillion. Indirect expenditure consists of personnel expenditure, grants, subsidies, social assistance, and others.