Legislator praise wage hike for civil servants

Legislator praise wage hike for civil servants

JAKARTA (JP): The House of Representatives members hailed
yesterday the government's plan to discuss a hike in salaries for
civil servants and Armed Forces personnel, predicting a fair
increase would be between 10 and 20 percent.

President Soeharto said, while presenting the government's
1997/98 draft budget yesterday, salaries and wages were expected
to climb to Rp 32 trillion (US$14.3 billion), up 16 percent from
last year's Rp 27 trillion (US$12.1 billion).

The amount is more than half the government's proposed routine
expenses which are set at Rp 62.2 trillion for the next fiscal
year.

"Every time state expenditure is drafted for civil servants'
salaries, their well-being is taken into consideration," Soeharto
said.

A.A. Baramuli, a member of House Commission VII on trade and
banking from Golkar faction, said the hike should be accompanied
by a massive 50 percent reduction of personnel.

"The payroll has reached an alarming 30 percent of our total
annual budget and should draw serious concern from all of us.
This needs a solution," Baramuli said.

He suggested civil servants who are let go be given full
pensions and loans to start businesses in their respective
hometowns.

"The loans could be taken from the government's development
expenditure, let's say one third of the amount." he said.

Hamzah Haz, chairman of the United Development Party faction,
said the hike should be applied differently according to level,
with the lower levels enjoying a greater increase than the top.

"It will be fair if civil servants from the lowest two levels
receive up to a 20 percent boost, while those on higher levels
get between 10 and 15 percent," Hamzah said.

Another House member, Iskandar Mandji of Golkar, said civil
servant salaries could increase by 20 percent if the government
managed state revenue efficiently.

"There is no reason to disapprove a salary increase. What can
we hope from a bureaucracy with salaries lower than the monthly
regional minimum wage of Rp 156,000?" Iskandar said.

Discussion

Soeharto said the salary hike would be discussed with the
House with the understanding that while the increase should
improve the well-being of civil servants, it must be realized
that every time salaries are raised -- even by a small percentage
-- the total amount would be large.

The number of Civil servants totaled some six million, 3.5
million in the bureaucracy and 2.5 in various state-owned
companies. The Armed Forces have more than 450.000 personnel.

The House is expected to complete deliberations on the state
budget draft by the end of next month.

The government has raised civil servant salaries in stages so
far. However, Soeharto admitted the increase did not suffice to
ease the burdens of civil servants' lives.

State Minister of Administrative Reforms TB Silalahi said the
government has so far selectively increased civil servant
salaries depending on the respective merits of individuals.

"Teachers who are members of the Indonesian Civil Servants
Corps, especially those assigned to remote areas, deserve higher
salaries. So do professional employees like researchers and
professors," Silalahi said.

Teachers make up 40 percent of the corps.

"Selective salary hikes are aimed at erasing the annoying
public perception that the civil servants salary scheme does not
differentiate between lazy and hard workers," Silalahi said.

The government has raised civil servant salaries in the past
four years by an average 10 percent a year to keep up with
inflation, except in 1994 when inflation slid to a low 4.5
percent. Inflation last year was estimated at 6.4 percent.

The highest monthly salary for civil servants at the IV/E
level is Rp 500,000 (US$217.3), while some entry-level I/A civil
servants earn less than Rp 90,000.

Civil servants are entitled to a family allowance, receiving
an additional 10 percent of their basic salary for a spouse and 2
percent for each child up to two children. In addition, those
living in areas such as Irian Jaya and East Timor are eligible
for extra living allowances. (amd/imn/pwn)