Sudomo lauds Soeharto's action in Jamsostek case

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)