Fallout not over from cash incentives

JAKARTA (JP): Reviews of Gubernatorial Decree No. 710/1981 and City Bylaw No. 1/1981 on incentive funds is being sought in the wake of the recent wrath over Rp 10 million cash given by Governor Sutiyoso to each city councillor.

Golkar Party councillor Amarullah Asbah said on Tuesday the two regulations were no longer compatible with growing demands for transparency and the principles of Law. 22/1999 on regional autonomy, which will take effect on Jan. 1, 2001.

"The old regulations are based on Law No. 5/1974 which does not differentiate the budget for city administration from that of city council. This makes it possible for city councillors to receive such incentives," Amarullah said.

"However, the law on regional autonomy stipulates separate budgets for the two institutions. Thus we will be financially independent from the city administration and such incentives could raise a negative perception."

The city bylaw and gubernatorial decree allow the allocation of between 2.5 percent and 5 percent from city tax revenues for incentives to be given to all city administration employees with good performance and all of the administration's supporting agencies.

However, neither regulations elaborate the supporting agencies.

Another councillor, Posman Siahaan, echoed Amarullah's view, "I fully agree with the opinion that those regulations should be amended as soon as possible," he said, adding that they do not comply with the spirit of regional autonomy.

The city councillors have come under media scrutiny for receiving the money a few days after they accepted Governor Sutiyoso's revised accountability speech on Aug. 22. (dja)