Indonesian Political, Business & Finance News

President may get Rp 107m in planned pay hike

| Source: JP

President may get Rp 107m in planned pay hike

JAKARTA (JP): A senior official confirmed on Thursday the
government's plan to raise the salaries of state officials and
civil servants, including the President, who under the plan would
receive Rp 107.4 million (US$14,900) a month.

The official, who is also involved in preparing the 2000 draft
budget, said adequate salaries were a precondition to good
governance.

"But the President's salary, even after the planned raise,
would still be negligible compared to the income of Singapore's
Prime Minister Goh Chok Tong, who is among the highest paid prime
ministers in the world," said the official, who asked for
anonymity.

Informed sources said the prime minister of Singapore, a
country whose per capita income is several times higher than
Indonesia's, received more than $58,000 a month, including perks.

Documents outlining the proposed salary increases for state
officials and government personnel which were obtained by The
Jakarta Post show the gross monthly pay -- salary and allowances
-- of the President would be raised from Rp 33 million ($4,580)
to Rp 107.4 million beginning in April.

The plan, which appears to be have been endorsed by the
International Monetary Fund, will raise Vice President Megawati
Soekarnoputri's gross monthly salary to Rp 89.5 million from Rp
22.04 million.

Cabinet ministers, the chief justice of the Supreme Court and
military chiefs will have their gross monthly salaries raised to
Rp 44.75 million from Rp 5.6 million, according to the documents.

Members of the House of Representatives, the Supreme Advisory
Council, Supreme Court justices and key officials at the Supreme
Audit Agency will see their salaries increased to Rp 27.6 million
a month from the present Rp 5.5 million.

The speakers of the House and the People's Consultative
Assembly and the chief of the Supreme Audit Agency will be paid
Rp 45.5 million a month, compared to the Rp 6.37 million they now
receive.

The gross monthly pay of provincial governors will be raised
to Rp 18 million from 2.3 million and district chiefs will
receive Rp 10.7 million from the Rp 1.68 million they currently
earn.

The documents also propose a 20 percent across-the-board raise
in the salaries of civil servants and military and police
personnel beginning in April, the start of the 2000 fiscal year.

The latest data shows the basic monthly salary of lower-rung
civil servants is about Rp 175,000.

Minister of Finance Bambang Sudibyo declined to comment on
the planned pay increases. However, he did say the president and
vice president were entitled to high pay.

"Given their great responsibility, senior state officials
deserve higher pay than corporate directors," Bambang said at the
House of Representatives.

He added that presently the official salary of the President
was much less than that of the central bank governor and the
chief of the Indonesian Bank Restructuring Agency.

"For example, my official income, including allowances and
perks, now amounts to only about Rp 10 million a month," Bambang
was quoted as saying.

State Secretary Ali Rahman confirmed on Thursday President
Abdurrahman Wahid's plan to raise the salaries of state officials
and Cabinet members.

Ali said a final decision on the planned pay hikes would be
made during a plenary Cabinet session scheduled for Friday.

"What I know as of today is that the President intends to
increase the salaries, but I do not know the amount or levels of
increases," Ali told The Post after meeting with the President at
Bina Graha presidential office.

During the session, the Cabinet will discuss the final draft
budget for the 2000 fiscal year. The proposed salary hikes,
including those for civil servants, are included in the draft
budget which will be submitted to the House next Thursday, Ali
said.

He said the President's plan was based on the 1999 Law on
Civil Service, which stipulates that the salaries of civil
servants must be linked to salaries in the private sector.
However, he refused to elaborate on the details of the planned
salary increases.

House Speaker Akbar Tandjung said he was unaware of the plan
to raise the pay of senior officials, but said the House had
asked the government to increase the pay of civil servants and
military and police personnel.

Minister of Law and Legislation Yusril Ihza Mahendra was
unable to hide his pleasure upon learning of the plan, although
he asked The Post to confirm the report with Bambang.

"I just heard it from you, but tomorrow the minister of
finance will discuss the matter," Yusril said.

Minister of Maritime Exploration Sarwono Kusumaatmadja refused
to comment on the matter, saying only Minister of Finance Bambang
Sudibyo had the authority to answer such questions.

"For me the most important thing is how to manage the official
salary. I am used to a small income," Sarwono said.

Akbar said any increases in the salaries of state officials
should be adjusted according to the country's economic condition
and the state budget.

Aberson Marle Sihaloho, an outspoken legislator from the
Indonesian Democratic Party of Struggle (PDI Perjuangan), urged
the House to reject the planned raise for state officials.

"The planned steep increase will certainly draw criticism and
protest, incite envy among the people and strengthen inflationary
pressures. Moreover, it is not a guarantee for a clean
government, efficiency and an end to corruption in the
bureaucracy," Aberson said.

Corruption can be minimized and stability maintained only if
the supremacy of the law is upheld, he said.

He said the government should instead raise the desperately
low salaries of civil servants, including police officers, to
improve their productivity and encourage them to enforce the law.

Aberson also said Indonesia would remain under the control of
developed nations and the International Monetary Fund if its
economic development program continued to depend on foreign loans
from the fund.

People's Consultative Assembly (MPR) Speaker Amien Rais
objected to the planned increase in the salaries of senior
officials, saying it would be preferable to raise the salaries of
civil servants.

"I will donate one-eighth of my salary to mosques if the gross
monthly income of the MPR speaker is increased to Rp 45 million
as planned," he said. (prb/rms/vin)

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