Let govt overcome crisis: Harmoko

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)