Indonesian Political, Business & Finance News

President says pay hike intended for future

| Source: JP

President says pay hike intended for future

JAKARTA (JP): Amid a public outcry, President Abdurrahman
Wahid said on Monday he would not propose a massive pay hike for
top state officials in the 2000 draft state budget.

However, he stopped short of saying the plan had been scrapped
and left it open for future consideration. The draft budget will
be submitted to legislators on Thursday.

At a specially convened media briefing at Bina Graha
presidential office, Abdurrahman said the planned raise was
merely a projection for when the country's economy had recovered.

Accompanied by Coordinating Minister of the Economy, Finance
and Industry Kwik Kian Gie, Minister of Finance Bambang Sudibyo
and Cabinet Secretary Marsilam Simajuntak, the President lamented
that the welfare of civil servants of all levels could not be
improved through a raise.

"In other words, civil servants from the lowest level up to
the President cannot enjoy the ideal level. But that is no
problem because the state condition is still like this."

It became known in recent days that the government was set to
propose a 20 percent across-the-board raise in the salaries of
civil servants, military and police personnel.

An uproar ensued when it was leaked that higher pay increases
were planned for top state officials.

The President's monthly salary would reportedly be raised from
Rp 33 million (US$4,580) to Rp 107.4 million in April.

The Vice President's gross monthly pay would increase to Rp
89.5 million from Rp 22.04 million.

Cabinet ministers, the chief justice of the Supreme Court and
military chiefs would receive gross monthly pay of Rp 44.75
million from their current Rp 5.6 million.

Members of the House of Representatives, Supreme Court
justices and key officials at the Supreme Audit Agency would have
their salaries increased from Rp 5.5 million to Rp 27.6 million a
month.

Bambang described the plan as a "simulation" which the
government had no intention of including in the draft budget.

"It is merely a simulation, and we have so many simulations in
my office... I don't know how such a list was circulated among
the public, then provoking the uproar," Bambang said.

"The list (of salary hikes) is not a part of the budget draft
document. It will not be included in the draft."

His disavowal contradicted earlier comments of some of his
colleagues.

The President expressed hope of more conducive economic times.

"If the economy improves or booms, our income will
automatically improve too," he said. (prb)

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