President Susilo Bambang Yudhoyono’s complaint that he had never had a pay raise in seven years as president received a quick response, with the finance minister saying the President’s salary would be increased this year.

Finance Minister Agus Martowardojo said Tuesday that the President would be among the 8,000 civil servants who would see their pay increased this year. “It would be hard to give other public servants a pay rise if the President’s salary is not adjusted,” he said.

With the adjustment of the President’s salary, his office could also push for an increase in the wages of high-ranking public officials such as ministers, governors, regents, legislative speakers and the Supreme Court chief justice among others.

Agus added that there were 8,000 public officials whose salaries would be reviewed. “There may be a working performance bonus that will vary depending on the different standards of living throughout Indonesia,” he said.

Agus’ statement came after widespread media reports about President Yudhoyono’s “complaint” that he had not received a pay rise since beginning his first term in 2004. Agus confirmed the President’s salary was Rp 62 million (US$6,882) per month, or Rp 744 million a year.

“There is also a Rp 2 billion operational budget, but the funds are allocated to support the President’s state activities. Neither the President nor his family receive [the Rp 2 billion],” he explained.

Several observers criticized the President’s statement as inappropriate, considering that many Indonesians continue to live well below the  poverty line.

University of Indonesia political commentator Maswadi Rauf said the planned pay rise plan was a blunder by the government, adding that he believed the President himself would not approve of the idea.

“Public opinion will come into play: If the President complains about his salary, the minister immediately takes action, but if contract teachers complain about their salaries, there’s no response from the ministers,” he said.

“Yudhoyono’s political image will take a beating. His administration’s weakness is that it cannot or won’t see that people are going to get hurt by his statements.”

The issue of the President’s salary has hit headlines, with House of Representatives’ Commission XI deputy chairman Harry Azhar Azis comparing it to the central bank governor’s Rp 265 million monthly paycheck, which is more than four times higher.

“However, the salary of the directors of state banks is higher than that of the [Bank Indonesia] governor or the President, reaching Rp 500 million per month including’ dividend payouts and other allowances,” he told The Jakarta Post via telephone.

Economist Purbaya Yudhi Sadewa said the salary of the President should actually be higher than that of the BI governor.

“In the US, the governor of the Federal Reserve receives $199,700 while the president is paid $400,000 per year,” he was quoted as saying by news portal detikfinance.com.

Given his salary, central bank governor Darmin Nasution earned nearly as much as US President Barack Obama, or nearly $353,000, Purbaya added.

Harry said legislators would propose a new regulation on public servants’ salaries to the government to resolve issues of salary gaps between high-ranking public officials.

Popular

PDI-P will likely be part of opposition: Ganjar

Indonesia one step from Olympics after beating South Korea

Bahlil leads task force to boost sugar, bioethanol production in Papua