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)