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Soeharto's smile gives nothing away

| Source: JP

Soeharto's smile gives nothing away

JAKARTA (JP): A smile is the only response one will likely get
from President Soeharto to the question whether civil servants
and Armed Forces (ABRI) personnel will see their wages increased
this year.

State Minister of Administrative Reforms T.B. Silalahi refused
to give a firm answer when the question was put to him by
reporters after he met Soeharto at Bina Graha yesterday.

"He (the President) smiled at me, and now I'm smiling at you.
What else is there to know," Silalahi was quoted by Antara as
saying. "Just wait and see," he added.

Last month the House of Representatives endorsed the
government's proposal to increase state spending in the year
starting April 1 by 11.6 percent to Rp 101.08 trillion (US$42.8
billion).

The government has proposed a 16 percent increase in the
amount allocated for the salaries of civil servants and ABRI
personnel, but it is declining to give a specific figure for the
average increase in the salaries of the 4.5 million people on its
payroll.

Officials fear that a formal announcement on the size of the
public sector pay increase would cause price hikes.

Silalahi said it was the government's wish to increase the
salaries of its workers, including pensioners. But even a 10
percent increase across the board would mean the government would
have to look for an additional Rp 1 trillion.

He admitted that in some provinces government workers'
starting salaries were lower than the minimum wage levels set by
the government for the private sector. But civil servants
received pension benefits and rice allowances to make up the
shortfall, he said.

Silalahi said the government would maintain the size of the
civil service, now put at around four million people, and only
recruit enough new staff each year to replace those retiring.
(emb)

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