DPD: There Disparities in Center and Regional Financial Balance
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Regional Representatives Council (DPD) has been realized that the financial imbalance between central and local government. Due to the problems that are so important and so big, but not matched by funding provided to the areas concerned.

This was stated by Council Member representing the Council Aida Ismeth Nasution, the Assemblies of Law Financial Balance between Central and Local Government, No.71/PUU-IX/2011 case, the Constitutional Court on Wednesday (15/2). "It is in fact contrary to the principles of money follow function, that funding should follow the functions of government are the responsibility of each," explained Aida. 

Furthermore, Aida is also said that the finance division is expected to be more proportional, democratic, transparent, and responsibility for funding the implementation of decentralized systems by considering the situation and condition of local government needs. "Therefore, the Council expects in this case, the parties must be read within the broader context associated with central and local government relations," pleaded Aida. 

In addition, Aida also mentioned the testimony of a number of local leaders presented by the Government. According to him, the problems associated with the arrangement has been delivered to the Oil and Gas, the real is not visible attention to the process and the articulation of the problem. "The real thing is not quite right so that when it is said to be the result of oil and gas revenue sharing funds," he explained.

 

Because the fiscal policy, Aida said that government and House of Representatives should be prudent in determining the formula that is more proportional and balanced. "Council does not want any buildup of state revenue sources, including management of Natural Resources, particularly oil and gas is centralized. Giving the impression that local government is highly dependent on central government transfers of funds, "said the DPD. 

In the same occasion, the Government also continued the expert who was delayed. They are Ibn Tri Cahyo and Eddy Suratman. In his statement, Ibn said that to get a just and harmonious relations in the petition, not enough to see the Act 33 of 2004 alone, but must look at the whole system is in the law, including Act 17 of 2003 on State Finance, Law no. 1 of 2004 on State Treasury, and State Budget Law. 

"All of it, describe the entire flow and budget distribution. If you do not, it will bring up the ego of regionalism. While the fair and consistent, is a system. And what would happen if the area has the potential of each demanding a greater share of other regions, "explained the Government's expert. 

While Eddy advised the Parties, if the petition is granted, then there will be about 7.8% of the average DAU (General Allocation Fund) in the whole region will go down. "This means that if one province to get 1 trillion, then there will be 80 billion reductions in funding, from local funds is concerned," he explained.

Previously, the applicant consisting of the People's Assembly Uniting East Kalimantan, Sundy InGaN, Andu, Luther coop, H. Awang Ferdian Hidayat, Muslihuddin Abdurrasyid, and H. Susilo Bambang argued Law. 33 of 2004 on Financial Balance between Central and Local Government unconstitutional, particularly Article 14 letter e, which reads, "Oil Revenue generated from the region concerned after tax and other levies in accordance with legislation, divided by balance: 1. 84.5% for the Government, and, 2. 15.5% for the Region ".

Meanwhile, Article 14 letter f reads, "Revenue from natural gas produced from the region concerned after tax and other levies in accordance with laws and regulations, shall be divided: 1. 69.5% for the Government, and, 2. 30.5% for the Region. "In this article," the phrase for Government 84.5% and 15.5% to 69.5% area and phrases to the Government and 30.5% for the region, according to the Petitioners violated Article 1 paragraph (1), Article 3 Paragraph (1), Paragraph (3), and (4), Article 18A Paragraph (2), Article 28D Paragraph (1), Article 28I Paragraph (2), Article 33, Constitution of 1945. (Shohibul Umam / mh/Yazid.tr)


Wednesday, February 15, 2012 | 20:34 WIB 110