House not informed on govt's plan on pay rise
House not informed on govt's plan on pay rise
JAKARTA (JP): A legislator has said the House of
Representatives has not been officially informed of the
government's plan to increase civil servants' salaries but lauded
the move anyway, saying it would help alleviate the pinch of the
economic crisis.
Soelaiman Biyahimo, of the United Development Party (PPP),
said over the weekend that House members learned about the
intended rise from the media. Soelaiman is a member of House
Commission VIII for the state budget and finance, research and
technology.
Kontan tabloid reported last week that the government was
likely to introduce a 15 percent pay increase for civil servants'
next month. "If it becomes a reality, the pay rise will lessen
the burden faced by civil servants in the severe economic
crisis," Soelaiman said.
Indonesia has been mired in a deepening economic crisis since
the rupiah began to slide in value last July. The crisis has
crippled the country's businesses, leading to massive layoffs and
soaring prices.
Soelaiman, however, said the 15 percent increase would not be
that significant given the escalating inflation rate.
"You can imagine how insignificant the pay increase would be
for the low-ranking civil servants," Soelaiman said. "It is far
from enough, but I suppose it is better than nothing."
The lowest-ranked, Grade IA, civil servants currently make Rp
135,000 (US$15) per month, while the basic salary of the highest-
ranking, Grade IV, is Rp 282,900. The rate excludes fringe
benefits such as the rice allowance.
The country's inflation rate soared to 25.13 percent in the
first quarter of 1998. Analysts have said that the rate for 1998
could reach 47 percent.
Inflation for the 1997/1998 fiscal year ending March 31 was
34.22 percent -- the highest during the New Order administration
-- compared to 5.17 percent in the previous fiscal year.
The chief of the Central Bureau of Statistics, Sugito Suwito,
said April 2 that the monetary crisis and the drought last year
had pushed inflation up.
He said food prices were the biggest contributor to the
consumer price index rise in March, accounting for 40 percent of
the increase.
The 15 percent increase for civil servants will however by
looked upon with envy by private sector workers who were recently
told there would be no pay rise for them this year.
The government decided last month not to raise monthly minimum
wages throughout the country despite pleas for a 20-percent
increase from labor leaders. (byg)