Indonesian Political, Business & Finance News

Sutiyoso violates ministerial decree

| Source: JP

Sutiyoso violates ministerial decree

Ahmad Junaidi, The Jakarta Post, Jakarta Post

As a governor, Sutiyoso should abide by the law. Ironically,
he has long violated a ministerial decree that bans him from
holding the post of commissioner at the city-owned market
operator, PD Pasar Jaya.

Sutiyoso has occupied the position since his installment as
the city governor in October 1999. Such a thing was common during
Soeharto's regime, when top government officials automatically
became commissioners in state-owned firms.

But late in the year, the Ministry of Home Affairs issued
decree No. 50/1999 to ban a governor or a deputy governor from
becoming a commissioner in state companies, according to deputy
chairman of City Council Commission B for economic affairs Dani
Anwar.

"The governor has, up till now, received a salary from PD
Pasar Jaya," Dani of the Justice Party told reporters.

According Bylaw No. 3/1999 on PD Pasar Jaya, a commissioner
receives a monthly salary amounting to 40 percent of the
president's.

However, it is not clear exactly how large their salaries are.

According to the Audit Commission on State Officials' Wealth
(KPKPN), Sutiyoso's wealth amounted to Rp 15 billion, making him
the richest governor in Indonesia.

The councillors found that Sutiyoso was still PD Pasar Jaya's
commissioner during a two-day meeting with the market's officials
at city-owned resort Wisma Jaya in the Puncak, Bogor, West Java,
last week.

At that time, they questioned the low contribution of the
market to the city's income.

Last year, the market's income was Rp 150 billion (US$15
million) but only Rp 3 billion of this went into the city's
coffers. This year the market was only targeted to contribute Rp
1.4 billion.

It has long been known that the market has become a cash cow
for certain city officials and councillors.

It is also reported that several councillors have often asked
to be "allocated" shop units in the shopping centers operated by
the market firm.

The firm operates dozens of traditional markets and shopping
centers, including the country's largest textile market at Tanah
Abang, Central Jakarta.

Commission B repeatedly asked the governor to replace the
market's executives but he never responded seriously.

"We will invite the market's executives to explain their
financial situation," councillor Dani said.

Separately, deputy governor for financial affairs Fauzi Alvie
Yasin said the governor would soon resign as the market's
commissioner.

"Probably, it will happen next month. It was almost overlooked
as we have many other things as high priorities," Fauzi told
reporters.

He admitted that the market firm was the worst for corruption
and collusion among city-owned companies due to its large number
of employees.

He revealed that some 60 percent of the employees, who
reportedly amounted to 6,000 people, would be moved to the market
firm's subsidiaries.

"So we are not simply toppling the top executives of the
market firm due to its bad performance," Fauzi said.

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