Council urges Sutiyoso to step down from firms

Ahmad Junaidi, The Jakarta Post, Jakarta

The City Council demanded on Monday that Jakarta Governor Sutiyoso resign as a commissioner of city-owned firms as holding such a position is a violation of a decree of the Ministry of Home Affairs.

"Although the decree carries no sanctions, Sutiyoso should resign from the companies," chairman of City Council Commission B for economic affairs Syarief Zulkarnaen told reporters.

He was referring to Decree No. 50/1999 that prohibits a governor and a deputy governor from becoming a commissioner in city firms.

Zulkarnaen of the United Development Party said that Sutiyoso was reluctant to resign from the companies since the decree carried no sanctions.

Councillors were surprised when they discovered last week that Sutiyoso was still a commissioner at city-owned PD Pasar Jaya, which operates dozens of markets and shopping centers.

PD Pasar Jaya, however, only contributed Rp 3 billion (US$300,000) to the city although its income reached Rp 150 billion last year.

City-owned firms are known to be used as cash cows for certain city officials and councillors.

Commission B deputy chairman Dani Anwar, from the Justice Party, strongly believed that Sutiyoso also held a similar position at five other city-owned firms because according to a bylaw on city-owned firms, the governor automatically become a commissioner at the firm.

The ministerial decree, however, which was issued in late 1999 has superiority over the bylaw.

Even though Sutiyoso had not complied with the decree, Dani did not see it a serious violation.

"It is his negligence that he has not resigned (from the companies)," Dani said.

Activists, however, demanded the ministry investigate the violation of the decree. They also urged the governor to return all income he has received as a commissioner with city-owned firms.

According to Bylaw No. 3/1999 on PD Pasar Jaya, a commissioner's monthly salary amounts to 40 percent of the firm's president's salary.

The Public Servant's Wealth Audit Commission (KPKPN) earlier reported that Sutiyoso's wealth reached Rp 15 billion, making him the richest governor in the country.

The home ministry prohibits the governor and deputy governor from becoming a commissioner at any city-owned company because they have limited time to oversee the firms.

The dual position also represents a conflict of interest.

Sutiyoso's resignation, however, may not be on the cards in the near future as the conflicting bylaws need to be reviewed first. The review of the bylaws will take time as it needs the council's approval.

Deputy Governor for Financial Affairs Fauzi Alvie Yasin had at first said that Sutiyoso might resign next month, but he then added that Sutiyoso was still needed to prevent corruption and collusion practices in the firms.