Sudomo lauds Soeharto's action in Jamsostek case

BANDUNG, West Java (JP): The announcement that President Soeharto will personally oversee the use of PT Jamsostek's funds has gained a positive response from observers, but they said it does not bode well on the credibility of his aides.

Chairman of the Supreme Advisory Council (DPA), Sudomo, said the decision reflects Soeharto's strong leadership.

"A good leader must act like that. When his subordinates are not able to solve a problem then the leader has to take over their task," Sudomo said yesterday.

The recent discovery that funds from the state-owned social insurance company had been usurped to finance the deliberation of the manpower bill sparked public uproar.

Minister of Manpower Abdul Latief was heavily criticized for allegedly paying off legislators to help pass the controversial bill.

Latief denied the allegations, claiming that Jamsostek funds were used for, among other things, computer services during the deliberation which took place at hotels.

It was reported that Rp 3.1 billion (US$795,000) was allocated for the deliberations, funds which were earmarked for workers' protection.

Jamsostek funds are collected from monthly fees deducted from workers' wages.

After meeting with Soeharto Thursday, Latief told journalists that the President had ordered the use of the funds and that he would now directly oversee the spending of Jamsostek funds.

Sudomo, a retired admiral and also former minister of manpower, said Jamsostek's funds should be used only for activities directly related to workers and not for other purposes.

"When I was a minister, the funds could only be used for workers' interests not to build buildings or anything else," he said in Surabaya, East Java.

Sudomo said that according to law, an approval from the Minister of Finance was needed in any spending of Jamsostek's funds.

Competence

Economists questioned President Soeharto's involvement in the disbursement of Jamsostek funds and said this reflected unfavorably on the competence of the President's aides.

Rizal Ramli, director of the prestigious ECONIT Advisory Group, said the decision did not set a good example as it appeared the minister could not cope with the problem.

"It should be Latief's responsibility. He doesn't have to hide behind the President's back," Rizal said in Bandung, West Java.

Laksamana Sukardi, chief executive officer of ReFORM Consulting Firm, regretted the decision saying it would add unnecessary burden on the President's already full agenda.

"This has also demonstrated that his aide was not reliable, and this is an alarming situation," Laksamana said.

Moreover, he said, the President's decision to directly oversee Jamsostek's spending occurred only after the controversy concerning the misuse of the funds. "So, public speculation that the President might not trust his aide anymore is plausible."

Laksamana said that it would have been different if the takeover occurred prior to the scandal. Therefore, he argued, the President's decision was probably aimed at damage control.

Laksamana suggested that PT Jamsostek be managed by a team of professionals with workers' representatives on its management board.

He also said that PT Jamsostek's investment policy must be transparent and directed to improving workers' welfare. (10/prb)