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.