Prijadi reshuffles finance ministry

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)