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)