GOVT TO PROVIDE RP309.8 TRILLION FOR FISCAL DECENTRALIZATION

Jakarta, Aug 3 (ANTARA) - President Susilo Bambang Yudhoyono said the government would set aside Rp309.8 trillion in funds to realize its fiscal decentralization program for the regions in 2010.

"From this amount, the allocation of equalization funds is planned to reach Rp293.0 trillion or an increase of Rp7.7 trillion," President Susilo Bambang Yudhoyono said in his state-of-the-nation address on the 2010 Draft State Budget and Financial Note before an extraordinary plenary session of the House of Representatives (DPR) here on Monday.

He said that the highest increase of the equalization fund in 2010 came from the reallocation plan of profession allowance which was allocated as additional Public Allocation Fund (DAU) intended for profession allowance for teachers amounting to Rp8.9 trillion.

The plan to reallocate the profession allowance for teachers into the DAU starting in 2010 is in line with the spirit of Government Regulation Number 41, 2009 on the Profession Allowance for teachers and Lecturers, he said.

Therefore, starting in 2010 the allocation of DAU in the structure of the state budget will consist of pure DAU which is allocated by using the pure formula and additional DAU for the profession allowance for teachers.

Yudhoyono said the allowance was given to teachers and lecturers possessing an educator's certificate as recognition of their professionalism, in conformity with their competence.

He said in order to continue the 2009 policy to set a minimum salary for lowest-echelon teachers of Rp2.0 million per month, the 2010 budget would include the allocation and adjustment fund in the form of additional education allowance for teachers amounting to Rp7.9 trillion.

"We all entertain the hope that with this greater budget allocation, teachers' and lecturers' welfare will be much improved in accordance with the people's expectations," the president said.