Since Asian finance crisis at end year-1990 which had responsibility in the fall of Soeharto’s regim, Indonesian public finance got an incredible transformation. Those condition increase a big economic contraction. It very amazed our nation bacause of obligation and subcidy increase sharply, meanwhile development cost had increase.
And now, after a decade, Indonesia had out from crisis and got position which this country has enough financial resources for fulfill development’s need. This change happened because of macroeconomic wisdom. And the most important is estimate deficit that very low. There is also government’s way to cost donation had transform within “big change” desentralization in 2001 that caused more than a third from all government’s cost donation moved to region in 2006. Tha same important thing, in 2005, the cost of International oil increase more higher. It caused Indonesian domestic oli subcidy could not control, threaten macroeconomy stability. Athough there is politic risk that the cost of oil flare up caused rise a big inflation, the government took a courageous decision to cut oil subcidy.
Even though that decision gaves U$ 10 billion for development program, but in 2006 U$ 5 also cames from combination of earnings and low obligation. It means in 2006 government had U$ 15 billion for development cost.
While Indonesia got a marvellous progress in prepare of finance, subcidy still be a big problem in gevernment estimation. Although there is subcidy less in 2005, it still added U$10 billion from government or 15% from estimation.
Because of Habibie’s decision (May1998-August2001) to decentrealize region authority in 2001, a big part of government’s cost had distributed to region department in Indonesia and now cost 37% from all public donation. Which show fiscal decentrealization that even more higher than OECD average.
And now, Indonesian government has a unique chance to repair its pubic service. Especially in east Indonesia. This things also possible for Indonesian to take focus on the next generation to do the change.
As an example, the education estimation increase to 17,2%. It got the higher alocation than other sector and take almost 3,9% from PDB in 2006 and 2,0% from PDB in 2001. In fact, the healthy public service cost still under 1,0% from PDB. At the same time, public infrastructure investation still on the lowest side after crisis (3,4% from PDB). One more sector that take attention now is the administration. Almost increase in 15 % in 2006. It show a significant dispersal for public resources.
0 comments:
Post a Comment