Let govt overcome crisis: Harmoko

JAKARTA (JP): House Speaker Harmoko is surrendering all decision-making on the Indonesian monetary crisis to the government, including on whether officials should take pay cuts as an austerity measure.

"Let's leave it to the executive branch. We believe the government will be able to overcome the monetary crisis," Harmoko said here yesterday.

He was pressed by reporters on whether Indonesia should emulate neighboring Malaysia and Thailand, which had cut officials' salaries in the face of economic turmoil.

Harmoko, before becoming House Speaker several months ago, was a cabinet minister for 14 years and is presently chairman of the ruling Golkar.

"If you ask me as chairman of Golkar on how to... overcome the monetary crisis, then I am calling on all of us to be frugal," he said.

"Let's live simply, modestly. Those who are able should help the weak and the poor. That's the way. Live simply," he said. "This (living simply) would be help enough... because we are being swept by the turmoil, which does not only affect macroeconomics, but also microeconomics, and those who live at the lower layers."

"I've told many people to follow a way of living which is frugal, simple and modest," he added.

On Wednesday, it was reported the Thai cabinet pushed through a 20 percent cut in the monthly salaries of government ministers, their assistants, and legislators.

The cabinet has not yet decided whether it will cut salaries of opposition MPs.

The salary cuts, which will be implemented for one year starting Dec. 1, 1997, are expected to save the government several million baht a month.

Thailand has cut its budget for fiscal year 1997 and 1998 three times in recent months to meet the tough requirements placed on a US$17.2 billion rescue package brokered by the International Monetary Fund in August.

Last week, Malaysian Prime Minister Mahathir Mohamad pushed the private sector to trim high salaries paid to senior executives in the wake of the economic turmoil, reports said yesterday.

The request followed that of Deputy Prime Minister Anwar Ibrahim, who said the government would cut the salaries of ministers and senior government officers as part of measures to instill confidence in the financial system. (swe/amd)