REPUBLIKA.CO.ID, JAKARTA -- The Ministry of State-Owned Enterprise (SOE)  submit budget cuts amounting up to Rp 95.007 billion, or 27.5 per cent according to the president of Instruction No. 4 of 2016. Within initial number of Rp 345 billion in 2016, the budget of the Ministry of SOEs turned to Rp 249, 92 billion.

Finance Minister Bambang Brodjonegoro representing SOE Ministry said budget cuts in the state is done by taking into account a number of activities that are not a priority. These activities include the managing budget of official travels (domestic and foreign), budget of meetings outside the office, contract activities, and the remainder of the budget that has been achieved, as well as the renovation of buildings.

Bambang explained, the presence of sizeable cuts by the SOE Ministry is not just cut budgets for Non-Priority program, but the Ministry of SOEs also had to cut budget to support priority programs.

"This pruning is a factor since the funds that is cut is quite large amount by the Ministry of SOE ," said Bambang in the capitol, Thursday (16/6).

This reduction that slightly cut its budget for prioritize programs have resulted in the preparation of several projects that SOEs to be delayed and cannot be completed in 2016, the Ministry of SOEs  has not done its best in monitoring and evaluating of national priority programs organized by the SOEs. Even activities that already in urgent renovation was finally deemed not possible.

Rp 95.007 billion of budget cuts, the Ministry of SOEs is to cut most of its programs amounting to Rp 64.1 billion or 35.84 per cent of the initial budget of Rp 179.172 billion.

Meanwhile, Iskandar, a member of Commission VI, said that the cuts were very large and the SOEs should not have done this because this budget cut program is the spirit of the ministry of state enterprises in running various programs.

"Cutting in this area is too big. Even though this is a priority in improving the performance of the Ministry of SOEs that could impact overall performance,” he said.

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