Indonesian Political, Business & Finance News

Govt to pay out 13th salary

| Source: JP

Govt to pay out 13th salary

The Jakarta Post, Jakarta

House of Representatives legislators and officials of other high
state institutions will join active and retired civil servants and
members of the Indonesian Military and National Police in
receiving their extra month's salary and pension payments.

State Minister of Administrative Reforms Feisal Tamin told
reporters on Saturday the government had allocated Rp 7.098
trillion (US$771.5 million) for the extra salary and pension
payments, which will be paid along with June salaries and
pensions.

There are around 3.6 million civil servants and 1.2 million
pensioners, plus 500,000 military and police personnel.

Feisal said President Megawati Soekarnoputri had signed a
government regulation on the payment of the extra month's salary
and pension.

The minister, however, brushed aside a possible link between
the government decision and the upcoming presidential election on
July 5.

"The government hopes that the extra month's salary payment
will be used to pay the entrance fees of civil servants' children
who go on to higher education this year," Feisal was quoted by
Antara as saying.

He said the extra month's salary had been proposed by the
President in her state address on the 2004 State Budget in the
House in August last year. The government rejected at that time a
proposal to raise the salaries of state officials and civil
servants.

Megawati and Hasyim Muzadi, the chairman of the country's
largest Muslim organization, Nahdlatul Ulama, will contest the
country's first direct presidential election on July 5 under the
banner of the Indonesian Democratic Party of Struggle.

Under the New Order, civil servants were forced to vote for
the ruling party, Golkar, paving the way for successive victories
by its chief patron, Soeharto.

Feisal said the government regulation covered members of the
People's Consultative Assembly, Supreme Court chief justice and
justices, Constitutional Court judges and Supreme Audit Board
members.

The monthly basic salaries of civil servants, and military and
police personnel range between Rp 600,000 and Rp 1,9 million, in
sharp contrast to lawmakers who earn around Rp 14 million per
month.

Low pay has been blamed for the widespread corruption in the
country's bureaucracy and law enforcement institutions.

During a hearing with the House on Wednesday, Feisal said the
government would increase the basic salaries of civil servants,
military and police personnel, and pensioners.

He said the allowances for police officers had also been
increased, while the President was currently studying a proposed
rise in the allowances extended to judges.

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