Councillors demand insurance of Rp 4 billion

JAKARTA (JP): After courting controversy for recent trips abroad, the City Council has now asked the city administration to provide councillors, for the first time ever, with life insurance.

"It's such a headache. The councillors have now demanded Rp 4.25 billion (US$472,222) for life insurance for the council's 85 members," a senior city official, who asked not to be named, told reporters here on Thursday.

He said the administration would provide the money, which would be taken from the current budget, while the council would decide which insurance firms they would deal with.

The official claimed that the demand for life insurance had only occurred during the current term of councillors, saying that past councillors had never received such insurance.

"The demand is likely to be approved by the administration as the revised budget, which is currently being discussed, needs the council's approval," the official said.

Separately, the council's deputy chairman, Djafar Badjeber, admitted that the council had demanded life insurance, but the amount was lower than Rp 4 billion.

"City administration employees receive life insurance. So, why shouldn't we?", said Djafar, who is also chairman of the city chapter of the United Development Party (PPP).

He acknowledged that the Rp 4 billion fund for insurance was part of an additional special allowance of Rp 5 billion for city councillors this year.

He said that during a meeting in Horison Hotel, Ancol, North Jakarta, the council had agreed to lower the allowance from an earlier proposal of Rp 11.7 billion to about Rp 5 billion.

"I asked my friends to lower the additional allowance as we are watched closely by the public, especially the media," said Djafar, who leads a special team tasked to discuss the revised budget.

Besides the additional allowance, the 2001 city budget has allocated about Rp 48 billion for a special allowance for the 85 councillors.

The councillors, who receive a monthly salary of Rp 7 million, are entitled to several allowances, including presents, rice, medical services, clothes and travel allowances, which totaled, for all councillors combined, about Rp 70 billion this year.

Each councillor is believed to earn a monthly income of between Rp 60 million and Rp 80 million, or about Rp 1 billion this year.

The special allowance fund is given to the councillors for their jobs in processing and passing at least 15 bylaws this year. So far, only six bylaws have been completed.

Djafar revealed that each councillor would receive Rp 3 million when each bylaw was completed.

"Not all the money would be disbursed. If the bylaws could not be completed, the fund would also not be disbursed," he said.

Chairman of Council Commission C for financial and budgetary affairs Amarullah Asbah urged the public not to question the council's allowances as they were far lower than what had been budgeted.

"Don't make it a big issue as it's no more that 2.5 percent of the budget," Amarullah of Golkar Party told reporters.(jun)