Govt will not cut officials' salaries

JAKARTA (JP): The government will not cut the salaries of its top officials including ministers and other civil servants as part of austerity measures to cope with the currency crisis, a minister said yesterday.

"Each country, each government has its own way of expressing their concern. When the needs and the salaries (of the country's civil servants and ministers) are compared with our neighbors' officials, our salary is lower than theirs," Minister/State Secretary Moerdiono said after meeting with President Soeharto at his residence on Jl. Cendana, Central Jakarta.

Reports that crisis-hit Thai and Malaysian governments were cutting the salaries of senior officials as part of their austerity measures, triggered debate here on whether Indonesia should follow suit. Malaysian Prime Minister Mahathir Mohamad had reportedly decided to cut his monthly salary.

"I am willing to have my salary reduced by 20 percent," Vice Speaker of the House of Representatives (DPR) Lt. Gen. Syarwan Hamid said Thursday.

He said government officials should set an example and make a sacrifice to help the country resolve the crisis.

The rupiah has depreciated about 50 percent against the U.S. dollar since the devaluation of the Thai baht on July 2.

"Of course, government officials are expected to consider economizing and frugality. If necessary, they should not hold gatherings or ceremonies which need much money," Moerdiono said.

Moerdiono did not mention a possible reduction of the salaries of the President and Vice President.

The 1993 decree of the directorate general for budgetary affairs of the Ministry of Finance stipulated an increase in the salary of the country's highest ranking officials, including the President and Vice President, by an average 203 percent.

According to the decree, the salaries of the President and Vice President were raised from Rp 4.95 million and Rp 3.3 million to Rp 15 million and Rp 10 million respectively.

Ministers, the Attorney General, the governor of Bank Indonesia, the Armed Forces commander, the House speaker, chairman of the Supreme Audit Board and chief justice receive Rp 2.5 million. During the 1988/1993 term they received Rp 825,000.

There was no data on any other salary hike since 1993.

"A salary cut will not be able to resolve the monetary crisis. Even if the salaries of the first echelon were cut by 30 percent the amount would be very small and would not be able to resolve the crisis," State Minister of Administrative Reforms, who oversees civil servant affairs, T.B. Silalahi, said yesterday.

Silalahi said there was no need to follow Malaysia and Thailand because Indonesia's situation was different.

"The salary of civil servants in Malaysia and Thailand are better than ours," said Silalahi.

Leading economist Laksmana Sukardi proposed Thursday that the government cut the salaries of ministers and director generals by 50 percent "to make them realize how grave the economic situation was".

In a discussion organized by the Paramadina Foundation, Laksamana said he resented what he perceived to be a lack of sense of crisis among top government officials.

Moslem intellectual Moeslim Abdurrahman suggested that the wages of the members of the House of Representatives also be cut by half.

Moeslim, however, said he doubted that such a measure would be effective. He said the officials might not object to the pay cut but it would not be enough, they should also stop wasteful habits such as going on shopping sprees abroad.

"To be honest, we are a culturally corrupt people. We don't have the slightest sense of shame anymore," said Moeslim. (prb/hbk)