Out of hand<\/p>\n
President Abdurrahman Wahid has effectively presented his
\ncritics with new ammunition to attack his administration. He has
\nbeen accused of lacking a proper sense of crisis resulting from
\nhis offhand approach to the sectarian conflict in Maluku. Now his
\ncritics can claim that he is simply out of touch with reality, or
\neven oblivious. His proposal to hike the salaries of all top
\nstate officials by a staggering amount starting as early as April
\n1 is so unbelievable that one might think it another one of his
\njokes.<\/p>\n
According to leaked state documents which might be unveiled in
\nthe President's budget speech on Thursday, the take-home pay of
\nthe President would be raised more than 225 percent from Rp 32.9
\nmillion to Rp 107.4 million; that of the vice president from Rp
\n22 million to Rp 89.5 million; and that of Cabinet members from
\n5.6 million to Rp 44.75 million. To secure a smooth passage at
\nthe House, the plan offers to increase the take-home pay of
\nlegislators from Rp 5.5 million to Rp 27.65 million, and that of
\nthe House Speaker from Rp 6.38 million to Rp 45.5 million.<\/p>\n
Even Nurcholish Madjid, a respected Muslim scholar who has
\npreviously been supportive of Abdurrahman's often erratic
\nbehavior, condemned the President's plan in no uncertain terms.
\nIt is not the salary increases, but the degree of these increases
\nthat has drawn widespread criticism. Further, this kind of
\nobscene escalation comes at a time when the nation is still
\nreeling from a deep economic recession, and when the government
\nhas barely rescued itself from near bankruptcy.<\/p>\n
Since the plan was never officially disclosed, but rather
\nleaked by some members of the appalled Cabinet, the government
\nhas not fully justified its proposed salary hikes to the public.
\nWe expect to hear the details in Thursday's budget speech, but
\nfrom the limited explanations given so far, including from
\nMinister of Finance Bambang Sudibyo, the reasoning is feeble, if
\nnot contentious. Bambang has asserted that the chairman of the
\nIndonesian Bank Restructuring Agency (IBRA), earns much more than
\nhimself, although he oversees the chairman's activities. One
\ncould deduce then that the IBRA chairman is grossly overpaid, and
\nnot that Bambang is entitled to a raise. Another comparison with
\nthe earnings of Singapore officials, including Prime Minister Goh
\nChok Tong, reflects the callowness of those who presented this
\nargument.<\/p>\n
The strongest justification for a sizable increase in the
\nsalary of state officials and civil servants is to stem rampant
\ncorruption in bureaucracy. Few people doubt that corruption is
\npartly, though not entirely, prompted by the extremely low
\nsalaries of public sector employees. Civil servants rank among
\nthe lowest paid professionals in this country. They deserve an
\nincrease, not only to stem corruption, but also to afford them a
\ndecent living and to give them fair rewards for their services
\nand dedication. No one would argue against this, but the
\ngovernment's proposal is for increases in structural allowances
\nand not for basic salaries. All signs point to a maximum increase
\nof 20 percent in basic salary. This is a gross insult compared to
\nthe 300 to 500 percent increases their bosses are serving
\nthemselves.<\/p>\n
Low salaries are only one factor contributing to corruption,
\ntherefore it is debatable that embezzlement will neatly disappear
\nas a result of public sector pay hikes, even if it is by a hefty
\namount.<\/p>\n
The salary hike proposal has left many unanswered questions,
\nsuch as how the government intends to pay for the massive
\nincrease in spending. The government's budget policy is always a
\ntrade-off, and never a win-win solution. To spend more on
\nsalaries, the government must simply cut other spending, for
\nexample, by reducing subsidies on fuel or food. It might simply
\nborrow the funds, probably from the International Monetary Fund.
\nBut finally, such massive increases in public sector salaries and
\nspending will surely have a profound effect on the economy, such
\nas another round of runaway inflation or high interest rates.<\/p>\n
As we wait until Thursday to learn the answers to some of
\nthese questions when the President unveils the 2000 budget plan,
\nthe leaked proposal has caused irreparable damage to the
\nreputation of the President, who has already faced mounting
\ncriticism for his failure to stop the violence in Maluku.<\/p>",
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