Teachers made to buy shares

Teachers made to buy shares

JAKARTA (JP): Minister of Education and Culture Wardiman
Djojonegoro insisted yesterday he knew nothing about the planned
deduction of the salaries of teachers in Central Java for the
purchase of shares in Indonesia's first passenger jet project.

The minister promised, however, to look into the matter after
he received reports from ministry officials in the province.

"We receive many similar reports every day -- some are correct
and others are baseless," said Wardiman here yesterday.

Antara reported yesterday that many civil servants in
Semarang, especially teachers, complained about the plan to
deduct an amount from their salary in September and October. The
state employees said they were not even consulted.

The deduction from the 11,015 civil servants' salaries will
range from Rp 2,500 (86 U.S. cents) for lower-rank state
employees up to Rp 11,000 for higher-rank employees. At least Rp
134.3 million is expected to be collected from them.

"There's no problem, because we informed them before ... and
they gave us their approval," secretary of Indonesia Civil
Servant Corps (KORPRI) Semarang-branch Guntur Permadi said
yesterday.

President Soeharto, in his private capacity, set up PT Dua
Satu Tiga Puluh (DSTP) in 1996 to finance the construction of
100-seat N-2130 jets by state-owned aircraft manufacturer PT IPTN
in Bandung, with equity capital of $400 million and 25 employees.

The project is estimated to cost $2 billion, and $1.19 billion
of it is expected to be raised through the public offering until
2006 when the jets will be ready for sale. For this year alone it
is expected to raise about Rp 600 billion.

The shareholders approved in February its plan to sell 774,398
shares for Rp 2.4 million each and 400,000 shares for Rp 5,500
each.

The public offering was special because it was made without a
listing on the Jakarta Stock Exchange and had no underwriter.

"We're confused, because we were told that our salaries would
only be deducted by the treasurer," a teacher complained.

Central Java legislative councilor Soebowo stated that the
deduction policy did not have any legal base.

"There have been too many deductions, they receive a small
salary and some may even suffer a deficit," Soebowo said.

In a related development, a provincial administration official
said in Semarang yesterday that DSTP had sold 80 of its shares,
each with a par value of Rp 2.35 million, in the city.

Semarang Mayor Soetrisno Soeharto bought 15 shares, sub-
district chiefs across the city together took 16, the city's
chapter of the Civil Servant Corps five, the local public works
office four, PT Karyadeka (private company) 15 and the provincial
revenue office two shares, Muchatif told newsmen.

"Since each of the shares was sold at Rp 2.4 million, the
sales brought Rp 192 million in equity funds to DSTP," Muchatif
was quoted by Antara as saying.

Muchatif quoted Mayor Soetrisno as saying that the N-2130 jet
development would bring up Indonesia's industry on par with that
in the industrialized countries.

"Therefore, it is therefore our duty to support the jet
aircraft development project," Soetrisno said.

The mayor called on the local people, notably businessmen, to
support the jetliner project by buying DSTP shares through the
Central Java Provincial Development Bank (BPD).

The Ministry of Education and Culture was criticized last
month for allegedly approving a private shoe company -- PT Aryo
Nusa Pakarti, owned by Soeharto's eldest grandson Ari Sigit -- to
monopolize the sales of shoes to millions of students across the
country. The President then announced his disagreement with the
project. (prb)