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House Welcomes Plan to Increase Party Subsidies Tenfold

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Jakarta. The government appears to be seeking a compromise after rejecting the House of Representatives’ proposed pork barrel scheme, by increasing government subsidies to political parties by at least 900 percent.

Home Affairs Minister Tjahjo Kumolo, a politician from the Indonesian Democratic Party of Struggle (PDI-P), said his office was proposing that current subsidies be increased gradually starting next year.

“We are proposing [that the subsidies] be increased 10 to 20 times from where it is today,” he said. “If for example, the PDI-P receives Rp 2 billion [annually], in the future we will receive Rp 20 billion.”

Parties at the national, provincial and district levels are entitled to government subsidies depending on the number of seats they have secured at the different levels of legislatures. The PDI-P is the largest party in the House of Representatives (DPR).

However, Tjahjo said the increase would not be given priority.

“The state budget will continue to prioritize spending for infrastructure, health, education and the people’s welfare. Once we have fulfilled those priorities, we can talk about increasing the subsidies.”

The 10-fold increase in subsidies is just the beginning, Tjahjo said. “If the economy improves, we can increase the subsidies by 20 times.”

The minister’s proposal needs approval from the Ministry of Finance and the DPR. But Tjahjo need not worry about the latter.

On Friday, House Commission II, which oversees home affairs and the bureaucracy, immediately gave its consent.

“Commission II concurs with the plan to increase subsidies 10-fold,” said Rambe Kamaruzzaman, Commission II chair. “In fact, don’t stop at 10-fold. It should 1,000- or maybe 10,000-fold!”

The Golkar Party politician said parties have been struggling to finance their operations through donations and members fees.

“Parties can’t do it alone; we require help from the government.”

Agus Hermanto, a Democratic Party politician, agreed, saying more state funding would mean “parties can focus on developing cadres,” instead of looking for donations.

Activists, who have criticized the lack of transparency in the way parties manage and report their finances, will likely condemn the government’s proposal.

Strong public disapproval could foil the scheme.

President Joko Widodo this week rejected lawmakers’ proposal to include Rp 11.2 trillion ($814.6 million) of so-called aspiration funds in next year’s state budget after public outcry.

The proposed fund was to be distributed among all 560 House members — meaning each would receive Rp 20 billion — and used for any development project of their choosing in their respective electoral districts.

The post House Welcomes Plan to Increase Party Subsidies Tenfold appeared first on The Jakarta Globe.


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