BI chiefs seek Rp 2.5b a year
BI chiefs seek Rp 2.5b a year
Tony Hotland, The Jakarta Post, Jakarta
The board of governors of Bank Indonesia has submitted a proposal
calling for each of its eight members to receive an annual salary
of over Rp 2.5 billion (US$272,296).
The proposal calls for the central bank's governor, senior
deputy governor and six deputy governors each to receive a
monthly pay package of between Rp 107.29 million and Rp 141.32
million.
This monthly pay package is comprised of a basic salary,
contingency allowance, performance allowance and an unspecified
allowance.
Under the proposal, each board member would also three
incentive bonuses a year, an Idul Fitri bonus and a Christmas
bonus, two annual leave bonuses, in addition to other benefits.
In total, the eight board members would receive 19 payments a
year, totaling up to Rp 2.69 billion.
The proposal was submitted to House of Representatives
Commission XI for finance last month and is currently being
deliberated. A decision on the matter is expected by Thursday.
The pay proposal is contained in one of the eight documents
submitted by the central bank, collectively titled Work Programs
and Budget in 2006 of the Central Office, by Bank Indonesia to
House of Representatives Commission XI. The documents were seen
by The Jakarta Post on Monday. BI deputy governor Maman
Soemantri, who discussed the proposal with lawmakers, could not
be reached for comment.
Commission member Harry Azhar Azis of the Golkar Party said
the pay proposal was inappropriate amid the financial hardships
faced by the country.
Harry said this was the first time the central bank had to
consult the House on pay for officials and employees, a
consequence of the newly amended Law No. 3/2004 on Bank
Indonesia.
In previous years, the central bank was able to determine its
own pay for officials. The bank's website, however, does not
contain any information on the current salaries of the board of
governors.
Article 60(3) of the amended Bank Indonesia law says the
central bank must submit its proposed operational expenses for
the year to the House for approval.
Previously, the bank consulted with the House only on issues
related to policy.
Harry said the pay proposal raised questions about whether
state officials should be so generously compensated while the
state was facing funding shortages for many programs.
He also said state officials at the same basic level should
receive pay packages that were similar.
"If you compare this (proposal) with the salaries of the
President or Vice President, it is clear the BI officials
would receive so much more money while not having the same level
of responsibility as, for example, the President.
"Even the President and the Vice President were harshly
criticized when it was proposed that their salaries be increased,
and that was a much smaller increase than for BI. I think it
would be wise for them (BI governors) to give this more thought
and consider whether this would be fair," he said.
The President receives a monthly salary of about Rp 62 million
and the Vice President of about Rp 57 million.
The House and the central bank are scheduled to meet on
Tuesday for further talks on the pay proposal.