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Study reveals astonishing levels of pay for governors

A study by the Indonesian Forum for Budget Transparency (FITRA) has found that East Java Governor Soekarwo is the highest-paid local government official for 2012, receiving a breath-taking Rp 642

The Jakarta Post
Jakarta
Mon, December 17, 2012

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Study reveals astonishing levels of pay for governors

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study by the Indonesian Forum for Budget Transparency (FITRA) has found that East Java Governor Soekarwo is the highest-paid local government official for 2012, receiving a breath-taking Rp 642.36 million (US$66,655) per month.

The budget watchdog group said that trailing Soekarwo were two governors in Java; West Java Governor Ahmad Heryawan with a take-home pay of Rp 603.42 million per month and Central Java Governor Bibit Waluyo at Rp 438.09 million.

Awang Faroek Ishak, the governor of resource-rich East Kalimantan, came fourth with Rp 344.08 million, while North Sumatra Governor Gatot Pujo Nugroho is in fifth with Rp 327.25 million per month.

FITRA researcher M. Maulana said that Jakarta Governor Joko “Jokowi” Widodo, who gets a princely Rp 1.2 billion per month, was not eligible for the list given Jakarta’s distinctive administrative status.

The five governors on average earned Rp 5.65 billion per year from the state budget this year. According to World Bank data, Indonesia’s gross domestic product (GDP) per capita stood at US$3,494 or Rp 33.67 million last year.

Maulana said that the salary figures were indicative of local economic progress.

According to Government Regulation (PP) No. 59/2000 and Presidential Decree No. 68/2001, every governor receives a fixed monthly salary of Rp 8.4 million.

However, the governors can take home such whopping amounts due to incentives and operational allowances. Government Regulation No. 109/2000 stipulates that operational allowances are paid based on local revenues (PAD).

One method of calculation is that a governor, whose region has revenues of more than Rp 500 billion, is entitled to an operational allowance of Rp 1.25 billion or 0.15 percent of the regional income.

Uchok Sky Khadafi, the coordinator of FITRA, said that similar arrangements were applied in the calculation of other allowances.

Another rule, Government Regulation No. 69/2010 stipulates that any region that takes in more than Rp 7.5 trillion in tax and levies should award its local leader 10 times their monthly salaries and benefits.

“Local leaders don’t deserve this level of payment. They have not provided better services for the public,” Uchok said. He singled out Soekarwo as a local leader who had fallen short of meeting his obligations.

“Just take a look at Soekarwo who is still unable to handle the Lapindo mudflow,” he said, referring to the massive mudflow in Sidoarjo, East Java, that was allegedly triggered by drilling activities of the oil and gas company PT Lapindo Brantas.

Uchok suggested the government oblige local leaders to spend money from their allowances on health and education programs.

“We suggest the government amend the regulations. The governor should meet the basic needs of the people and only take their cut if there’s anything left,” he said.

The FITRA study also found that the administrations spent the largest proportion of their budgets on running their bureaucracies.

It reveals that a staggering 302 of 524 cities and regencies across the country spend more than half of their budgets on civil servants’ salaries. Eleven local administrations allocated 70 percent of their budgets for civil servants’ pay. (yps)

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