Thu, 21 Dec 2000

Govt urged to announce new wage system for civil servants

JAKARTA (JP): The House of Representatives' budget committee on Wednesday called on the government to officially announce its new policy on the new remuneration system for civil servants and servicemen to avoid further confusion.

"Many are confused with recent reports that the government will raise the wages of civil servants and servicemen in the next fiscal year. Media reports are misleading since the government has yet to announce the new remuneration system," Aberson Marle Sihaloho, a member of the budget committee, told The Jakarta Post here on Wednesday.

He said the budget committee and the government had reached an agreement in February to reform the structure of civil servants' salaries and to make adjustments according to the consumer price index and inflation.

"The wage structure, comprising of basic salaries and allowances, has been simplified into gross salaries as take home pay. This simplification will be a reference point for the determination of civil servants' payroll for their pension fund program. And, then, the level of civil servants' wages will be adjusted to the inflation rate," he said.

Aberson, a legislator with the Indonesian Democratic Party of Struggle (PDI Perjuangan), said that consistent with the new policy, the government has twice raised civil servants' salaries during the nine-month 2000 fiscal year.

"As of April 1, 2000, the gross salary of the lowest-rank (IA) civil servants with minimal experience was raised to Rp 438,000 from Rp 70,000 while the wage of teachers in the state-run education institution and nurses in state hospitals and clinics was raised to Rp 538,000 from Rp 70,000," he said.

He added that the agreement on the new remuneration system for civil servants was agreed upon when the House and the government deliberated the 2000 draft state budget in February.

He said that another adjustment was made on Oct.1, 2000 when the government further raised the civil servants' wages by around 10 percent.

"The gross wage of lowest-rank civil servants with little work experience was raised from Rp 438,000 to Rp 530,000 while that of lowest-rank teachers and medical staff was increased from Rp 538,000 to Rp 650,000," he said.

Police

According to Aberson the House's budget committee and the finance minister have also agreed with a remuneration package to raise the wages of law enforcers; including Police, prosecutors and justices, in order to prevent them from abusing their power and from committing corruption.

"Law enforcers deserve better payment for their service and this would further encourage them to comply with their respective code of ethics," he said.

Ferry Mursidan Baldan, deputy chairman of the House's Commission II on legal and home affairs, hailed the new remuneration system as a way to reduce to a minimum the corrupt practices within the bureaucracy.

"With the new remuneration system...their productivity or their service to the public will be improved. Stiffer sanctions must imposed against corrupt officers and officials," he said.

Meanwhile, Jacob Nuwa Wea, a member of the House's Commission VII on labor and social welfare, called on the House and the government to combine fiscal and monetary policies to help improve the workers' wage level.

"The government can put aside a part of the taxes collected from employers, and return it as a subsidy to employers so as to enable them to increase their workers' wages," he said, citing that with the new remuneration policy, the wage level in the bureaucracy was higher than the monthly minimum wage (UMR) in the private sector.(rms)