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)