Fight against graft launched to ease crisis

Fight against graft launched to ease crisis

JAKARTA (JP): President Soeharto ordered cabinet ministers and
heads of government agencies on Wednesday to avoid all
unnecessary spending and take tough measures against corruption
and abuses of power in their respective offices.

Soeharto also told them to restrict local and overseas trips
and prohibited them from using state money to pay for spouses or
family members to accompany them on working trips.

"Official state trips abroad or locally should be limited for
very important purposes... Entourage numbers must be limited and
wives do not need to accompany their husbands abroad," Minister
of Information R. Hartono quoted Soeharto as saying.

The President presided over a year-end cabinet meeting on
Wednesday which was attended by Vice President Try Sutrisno, all
cabinet ministers and the top echelon of government officials.

"The ministers and the heads of state agencies must take firm
and effective measures at any sign of deviation, leakage,
extravagance and corruption," Soeharto said.

During the meeting, State Minister of National Development
Planning Ginandjar Kartasasmita and Minister of Finance Mar'ie
Muhammad submitted their reports on the 1998/1998 state budget
draft and on the latest economic situation.

The President is expected to propose next year's budget draft
to the House of Representatives on Jan. 6.

Ginandjar had earlier indicated that the budget would not
exceed the current budget of Rp 101.1 trillion.

The 1997/1998 budget was equivalent to about US$42.4 billion
when it was adopted by the House in February but dropped sharply
to about $23.5 billion in December. The value of the greenback
was only about Rp 2,400 in February and then skyrocketed to Rp.
6,000 this month.

"Although economic activities will decline next year, we must
continue to boost state revenue, either from tax or non-tax
sources," Soeharto said during the 90-minute meeting.

Despite the economic hardship, Minister/State Secretary
Moerdiono said last week that the government would not cut the
salaries of its top officials including ministers as part of
austerity measure or demonstration of solidarity to people's
suffering.

According to the 1993 decree of the directorate general for
budgetary affairs of the Ministry of Finance, the monthly
salaries of the President and Vice President are Rp 15 million
and Rp 10 million respectively. Ministers receive Rp 2.5 million.

"The government offices and officials must show their
frugality and focus their attention on how to serve the people,"
Soeharto said.

Next year's budget will also be haunted by rising foreign
debts. As of September, the country's foreign debt totaled $117
billion, including $65 billion owed by the private sector.

"The dollar appreciation must be used as an opportunity to
boost exports, while the rising prices of imported goods can be
used as momentum to boost the use of domestic products among
society and government offices," the President said. (prb)