Francezka Nangoy – In keeping with recent history, Finance Ministry data released on Tuesday showed that the government had spend just over half the national budget so far this year.

As of Nov. 22, the government had disbursed only Rp 556.28 trillion ($61.75 billion), or 56 percent of the total budget of Rp 993.14 trillion.

The slow rate of spending worries experts, who point out that government expenditure is a crucial pillar for growth in the economy. A key area where spending is lagging is infrastructure development, according to an analyst.

Purbaya Yudhi Sadewa, chief economist at state brokerage Danareksa Sekuritas, said the low rate of budget spending shows poor planning for projects.

He noted that the Ministry of Public Works had only spent Rp 18.26 trillion of its allocation, or 49.26 percent of its Rp 37 trillion. The ministry is responsible for development of roads, bridges and ports.

"This is not about how much money the government can save, but how the government will use the money it has to push the economy," Purbaya said. He said it was also disappointing that the government did not spend the budget evenly, pushing spending at the end of the year to catch up.

However, lawmaker Harry Azhar Azis, deputy chairman of House Commission XI, which oversees finance, remains optimistic. "Maybe there are projects that are already in progress but have just not been disbursed," he said in a telephone interview.

He said the House of Representatives is pressing the government to evaluate its spending every three months in 2011 and to implement a reward-and-punishment model for ministries to spend their budget allocations.

Eric Sugandi, an economist from Standard Chartered Bank, said one reason for poor infrastructure development is concern about coming to the attention of the Corruption Eradication Commission (KPK). "There are many cases where the appointed project managers are too careful in spending their budgets for fear of the KPK."