Prijadi reshuffles finance ministry

JAKARTA (JP): Finance Minister Prijadi Praptosuhardjo installed 34 new senior officials on Tuesday as part of a comprehensive restructuring program at the powerful ministry.

Prijadi said that the massive reshuffle was a must because the ministry needed fresh people in order to meet the ambitious targets set in the 2001 state budget, and to overcome various challenges.

"The challenges in 2001 will be tough. We need to reorganize our resources and modify working methods," he said at the inauguration ceremony.

"These officials will spearhead the ministry," he added.

Prijadi installed 20 director-level officials within the directorate general of tax, and seven within the directorate general for the development of state-owned enterprises.

Among of the new senior tax officials are Petronius Saragih as director for tax planning and tax systems, Taufieq Herman as director for income tax, I Made Gde Erata as director for value added tax and other indirect taxes, and Suharno as director for land and building (property) tax.

Prijadi also replaced the heads of 13 regional tax offices. The new officials included Achmad Sjarifuddin Alsah as the new head of the tax office in Medan (North Sumatra), Hasan Rachmani in Palembang (South Sumatra), Hardi as the new head of Jakarta tax office area I, Sumihar Petrus Tambunan for the Jakarta tax office area II, Muhammad Said for the Jakarta tax office special area, Ichwan Fachruddin in Semarang (Central Java), Fadjar O.P. Siahaan in Surabaya (East Java), Bambang Basuki in Pontianak (West Kalimantan), Amri Zaman in Balikpapan (East Kalimantan), Djonifar Abdul Fatah in Ujung Pandang (South Sulawesi), Mochamad Tjiptardjo in Manado (North Sulawesi), and Achmad Peris in Denpasar (Bali).

"The tax office will face a very tough job because taxes are the main source of revenue for the state budget," Prijadi said.

Meanwhile, Roy Ronald Lino, who previously headed the customs and excise office in Jakarta's Tandjung Priok Port, the country's busiest port, was promoted to director position within the ministry's internal audit division.

Rumors have it that Prijadi was forced to replace Roy because he had been too aggressive when combating smuggling activities in the Jakarta area, including his recent success in foiling the illegal import of luxury cars by a number of influential people.

But director general of customs and excise Permana Agung dismissed the rumors, saying that the reshuffle was a normal practice aimed at getting fresh personnel in the office.

There had also been rumors, from sources close to the President, that Prijadi was planning to replace Permana and the director general of tax Machmud Sidik.

But Prijadi also dismissed those rumors. "There is no such plan," he said.

President Abdurrahman Wahid commenced restructuring at the finance ministry by returning authority over the country's state- owned enterprises last year.

The ministry also oversees the Indonesian Bank Restructuring Agency (IBRA), which controls more than Rp 600 trillion worth of assets, including the ownership of various private companies transferred by ailing domestic banks and their former owners.

Prijadi said that meeting the target set in the 2001 state budget would be a formidable task.

He said that the ministry initially designed a relatively conservative state budget, but the House of Representatives insisted on larger spending and higher revenue targets.

He pointed out that the government initially planned a revenue target of Rp 243 trillion, equal to 17 percent of gross domestic product (GDP), and a spending plan of Rp 295.1 trillion, equal to 21 percent of GDP, but these were respectively revised upward to Rp 263.2 trillion (18 percent of GDP) and Rp 315.8 trillion (22.2 percent of GDP).

He said that a budget deficit was set at Rp 52.5 trillion, equal to approximately 3.7 percent of GDP.

"We'll have to work all out this year to meet the target," he said.

"It will be a very tough job, particularly as uncertainty continues to haunt our economy," he added.

Prijadi said that other challenges would arise from the recent implementation of the regional autonomy legislation, which gives regions greater power in managing their political, social and economic affairs. (rei)