Wed, 12 Jul 1995

No bars on officials' children

JAKARTA (JP): State Minister of Administrative Reform T.B. Silalahi said yesterday that there is no regulation banning the children of government officials from running businesses.

"These children are Indonesians with rights similar to other citizens," Silalahi told reporters yesterday.

"Once they are no longer dependent on their parents, once they have their own family, they are free. How is it that they can't indulge in business?" he queried after meeting with President Soeharto at Bina Graha presidential office.

The minister was commenting on a debate started by members of the House of Representatives at a hearing with Attorney General Singgih on Monday.

Members of the House's Commission III, which deals with legal issues, asked Singgih about the legality of senior government officials' offspring running business in view of a 1980 regulation barring civil servants from pursuing business directly or indirectly.

The regulation made no specific stipulation about the offspring of civil servants.

The legislators fear that given the position of the senior officials, some of the young entrepreneurs could have an unfair advantage over competitors in securing lucrative government contracts and projects.

The concerns were reinforced by allegations of collusion and nepotism in the way government contracts and credit from state banks are granted.

"Let's not narrow the interpretation of Government Regulation No. 30/1980 about the discipline of civil servants," Silalahi said yesterday. "Let's face it, once these children are married or financially independent, they should be allowed to run their own life."

Against the law

Regarding the allegations of nepotism and collusion, he said it was against the law, whether it involved officials' children or not, and should be stopped.

Asked about control mechanisms on collusion and nepotism, he pointed out that each official in the administration is responsible to monitor the activities of his subordinates.

On top of that, there are government agencies and state institutions such as the State Audit Agency, the Supreme State Audit Agency and the inspector general for development to monitor the situation.

Silalahi said his office was in the last stages of reviewing regulation no. 30/1980 when the debate surfaced on Monday.

Nepotism and collusion were not discussed during his meeting with President Soeharto, he added.

The legislators were not the first people this month to voice concern about collusion and corruption in business.

The influential Indonesian Ulema Council said earlier that it was very concerned at the level collusion and corruption and that it plans to discuss the issue at its congress later this month.

Silalahi said yesterday, however, that the council may have been exaggerating and that the problem isn't as grave as they suggest. "You'll find corruption, collusion and nepotism everywhere in this world. But don't say its grave in Indonesia." (emb)