Indonesian Political, Business & Finance News

Civil service salary likely to be increased next year

| Source: JP

Civil service salary likely to be increased next year

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The government is considering a raise for civil servants and
members of the Indonesia Military (TNI) and National Police next
year, despite the burden on the state budget from skyrocketing
global oil prices.

If it materialized, it would be the first raise for civil
servants, soldiers and police officers since 2003, when the
government introduced the 13th month salary but suspended annual
pay increases.

State Minister for Administrative Reforms Taufik Effendy said
on Tuesday the government would prioritize raises for lower-
ranking civil servants and TNI/police members.

There are about six million of civil servants, including
teachers, plus 500,000 TNI soldiers and 125,000 police personnel.
A new civil servant receives about Rp 575,000 (US$60) a month in
basic salary, while a top-echelon official makes Rp 1.8 million.

Taufik stopped short of announcing the amount of the proposed
raises, which he said would depend on the condition of the budget
and the approval of the House of Representatives.

However, a source at the Vice Presidential Office said the
raises would not exceed 20 percent.

Minister of Finance Jusuf Anwar said the government was still
discussing the idea with the House, which has also proposed a
drastic increase in the allowances for its 550 members.

"The government hopes to improve the welfare of civil servants
and members of the TNI and police. But the plan must be realistic
and workable," he said.

Jusuf said the government could afford the raises. "This is no
problem for the government. Our cash flow is safe."

The government will spend Rp 75.6 trillion this year for the
fuel subsidy due to soaring global oil prices.

Jusuf said the government also disbursed Rp 7 trillion to pay
the 13th month salary of civil servants and TNI/police members.

The minister did not comment on the House members' proposal
for larger allowances, saying he had not received the proposal.

"Of course the government expects to improve the welfare of
the general public. We will hear the proposal tomorrow
(Wednesday)," Jusuf said.

The House is seeking an additional Rp 15 million to Rp 30
million for its members, reportedly to allow lawmakers to spend
more time with their constituents.

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