Indonesian Political, Business & Finance News

Watch groups demand investigation of Sutiyoso

| Source: JP
Watch groups demand investigation of Sutiyoso

Ahmad Junaidi, The Jakarta Post, Jakarta

Activists have demanded that the Inspectorate General of the
Ministry of Home Affairs mount an immediate investigation into
Jakarta Governor Sutiyoso for allegedly violating ministry decree
No. 50/1999.

Chairman of the Jakarta Residents Forum (Fakta) Azas Tigor
Nainggolan said the ministry should punish Sutiyoso if he were
found guilty of violating the decree, due to his ongoing role as
commissioner of city-owned market firm PD Pasar Jaya.

"Besides being punished, Sutiyoso must also return all his
salary as a commissioner of PD Pasar Jaya," he told The Jakarta
Post
Saturday.

Violating a ministerial degree usually results in an
administrative penalty, such as a warning letter.

Bylaw No. 3/1999 on PD Pasar Jaya states that a commissioner
shall receive a monthly salary equal to 40 percent of the company
president's.

Sutiyoso is reportedly the richest governor nationwide with
wealth amounting to Rp 15 billion (US$1.44 million), according to
the Audit Commission of State Officials' Wealth.

Secretary of the Jakarta Study Center (PPJ) Ganda Hutabarat
strongly believes Sutiyoso also holds similar posts in other
city-owned firms, especially those with the legal status of
Perusahaan Daerah (PD) or provincial companies.

"Sutiyoso must resign from his post in the companies even
though the bylaw allows him to hold the commissioner's post,"
Ganda told The Post.

The Jakarta Administration currently has 25 city-owned firms.
Eight of them have PD status, meaning they are supposed to
provide a public service, while others are limited companies
(PT), which concentrate more on earning profits.

According to bylaws on PD firms, a governor automatically
becomes the firms' commissioner.

Sutiyoso's position as commissioner of the market firm was
revealed during a two-day meeting at the city-owned resort Wisma
Jaya Raya in Puncak, Bogor, last week. Most city councillors were
surprised that Sutiyoso held the position.

PD Pasar Jaya and other city-owned firms are widely viewed as
"cash cows" exploited by officials and councillors.

Several retail outlets in shopping centers operated by the
firm were reportedly allocated to the councillors. The firm
operates dozens of traditional markets and shopping centers,
including the country's largest textiles center, Tanah Abang
market in Central Jakarta.

Allocating commissioner posts in provincial companies to
councillors and officials has tended to breed corruption.

Two years ago, several city officials and councillors traveled
to South Korea, Japan and Australia with the financial support of
city-owned developer PT Pembangunan Jaya.

Deputy Governor for Financial Affairs Fauzi Alvie Yasin
admitted that Sutiyoso was still PD Pasar Jaya's commissioner,
adding that the governor would soon resign from the firm.

However, he threw his weight behind the governor saying
Sutiyoso was still needed as the firm's commissioner in order to
prevent internal corruption.

Fauzi admitted the firm was the worst of the city-owned
companies in terms of corruption and collusion, due to its large
number of employees.
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