This is Not Federal State: President

VIVAnews - Indonesian President Susilo Bambang Yudhoyono said that obstacles are on the way concerning budget absorption in the central and provincial governments. However, the President also received reports on inappropriate use of Provincial Budget.

"There's a report saying that a regency has misused its budget," said Mr Yudhoyono today, August 5.

Upon reviewing the report, President Yudhoyono discussed about the issue with the head of regency. During the talks, the regent said the local Regional House of Representatives have approved the budget's use.

""This is wrong. This can't be done," said the President. He questioned about the use of regional budget which is not in line with the issued policies and regulations attached in the State Budget.

The President emphasized Indonesia's system of unitary state instead of being a federal or confederation one.

"I thus cleary state that this is not the way a unitary state works. This is neither a federal state," said the President.

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Translated by: Bonardo Maulana W