Akbar supports hike in civil servants' pay

JAKARTA (JP): House of Representatives Speaker Akbar Tandjung praised the government's plan to raise the salaries of civil servants and estimated that the submitted draft budget could probably tolerate an increase to about 30 percent.

"I think a 30 percent increase for the salaries of civil servants is the best figure," Akbar said.

He noted that in the past, political factions and commissions in the House proposed a 100 percent increase and thus contended that 30 percent would be an ideal figure.

He further argued that 30 percent could be accommodated in the budget, and noted that last year civil servants received a 15 percent pay hike.

"Based on figures of the draft, we can afford to increase civil servants' salaries. The figures are very realistic," he said.

The government did not specify on Thursday how much of an increase civil servants would receive. However, based on the figures submitted, economists estimate a likely increase by no more than 20 percent.

The 2000 draft budget, which only covers a nine-month period, sets personnel spending at Rp 29.3 trillion. The previous 1999/2000 budget, which ran on a 12-month period, set personnel expenditures at Rp 33.5 trillion.

The latest data shows the basic monthly salary of lower-rung civil servants is about Rp 175,000.

Civil servants' salaries rose by 15 percent last year despite rocketing inflation, which reached 36.8 percent and 45.4 percent in 1997/1998 and 1998/1999 respectively.

While expressing support for a pay raise of nearly one-third, Akbar pointed out that the current number of civil servants was too large.

He supported the idea of reducing the number, but warned that layoffs would be a very extreme measure.

"Zero growth in the number of civil servants should be maintained and new recruitment should be conducted selectively," he said as one alternative.

The number of civil servants, including members of the Indonesian Military (TNI) and police, is about five million.

The Indonesian Democratic Party of Struggle (PDI Perjuangan) also expressed support for a salary increase for civil servants but warned of wide-reaching social impact which could arise as a result.

"We hope an increase will not create an economic and social gap as there are still so many unemployed," the party's House faction chairman, Dimyati Hartono, said.

He warned that as many struggle to earn a decent living, civil servants would suddenly be getting hefty pay increases.

Bagir Manan, senior lecturer at the University of Padjadjaran in Bandung, also expressed his support saying that it would help to increase the purchasing power of low level employees "who are the consumers of local products, which could help this country's economic activities".

The draft did not touch on possible plans to increase the salaries of senior state officials and legislators.

After a public uproar when the plan was leaked last week, President Abdurrahman contended that the increase for state officials was merely a simulation.

Coordinating Minister for Economy, Finance and Industry Kwik Kian Gie said that while he accepted criticism over plans to raise the salaries of top state officials, the government's intention was valid.

"Raising their salaries alone won't stop corruption. But if we combine it with strong punishment, it would certainly help," he said.

"People can doubt (the intentions of) Soeharto or Habibie, but not President Abdurrahman whose daily life is filled with humility. It's unfair to prejudge his intentions (to raise salaries)," Kwik said. (01/jun/mds)