H

aving just been inaugurated as councillors for the 2019 to 2024 period a few weeks ago, many members of legislative bodies across Java are reportedly applying for credit from lenders despite receiving high gross salaries. The same phenomenon is also occurring in Jakarta.

“Several councillors have applied for multifunction credit,” city-owned lender Bank DKI corporate secretary Herry Djufraini told The Jakarta Post on Wednesday over the phone.

Multifunction credit is offered by a lender to those whose salaries are paid by Bank DKI, including civil servants and employees working in city-owned companies.

Herry said this type of credit was similar to credit products offered to non-Bank DKI customers.

To apply for the product, legislators have to submit copies of their appointment letters as an administrative prerequisite.

Other prerequisites include filling out a registration form and submitting copies of identity cards, family cards and salary slips.

The same documents must be submitted by other employees working within the city administration’s institutions.

“They [councillors] keep the original documents. We only need a copy to prove they are members [of a legislative body],” he said.

The size of a loan would vary depending on the size of the salary of each applicant, he said. “The higher the salary, the higher the ceiling.”

He expressed hope all councillors would apply for credit through Bank DKI. A number of councillors would not comment on the issue.

Syarif, from the Gerindra Party, claimed no Gerindra councillors had applied for loans.

“They would notify [Gerindra] faction [if they have applied for credit]. We’ll see in about one or two weeks,” he said.

As it is considered a private matter, Syarif said it was all right for a councillor to apply for a loan.

A councillor from the Prosperous Justice Party (PKS), Mohammad Arifin, concurred, saying applicants notify the faction.

“We might ask them about the urgency [of applying for credit],” he said, adding that no PKS members in the legislative body reported seeking credit.

Nova Harivan Paloh from the National Democratic Party (Nasdem) also said it was everyone’s right because “[loan payments] will be automatically taken from monthly salaries, thus there would be no problem. That’s just like credit without collateral”.

Pantas Nainggolan from the Indonesian Democratic Party of Struggle (PDI-P) was also of the opinion that it was all right for councillors to use their appointment letters as guarantees in applying for credit, as long as they did not fall into arrears.

Idris Ahmad, a councillor from the Indonesian Solidarity Party (PSI), said the party had called for its members to focus on their work, also claiming there were no reports on such loans.

“In principle, [applying for a loan] is everyone’s right that we won’t interrupt, but here we focus on working,” he said.

“We have suggested our members commit to their work and not be trapped in a process like that,” he said.  

City Council secretary Muhammad Yuliadi said borrowing money was considered a private matter, hence the secretariat did not assist in the application process and believed the loans were used for reasonable purposes.

“If they [councillors] want to hold an event for the public, they take [out a loan],” he said.

The city councillors receive Rp 111 million (US$7,762) each as a monthly gross salary. The council speaker, who is also given an official residence and an official car, gets Rp 59 million per month, while the four deputy speakers receive Rp 110 million each per month plus an official car.

A number of councillors across the nation reportedly applied for loans for various purposes, including to pay off campaign expenses from the recent legislative elections.

A councillor in the Pamekasan Legislative Body in East Java admitted having applied for more than Rp 500 billion in credit. The loan is to be used to pay back money used during the campaign.

The councillor, who wished to be identified as MR only, said closed meetings held during the campaign period were expensive as he had to pay for transportation and food for the constituents, kompas.com reported.

About 80 percent of councillors in Gunungkidul regency, Yogyakarta, also reportedly applied for credit, as revealed by council secretary Agus Hartadi, according to kompas.com.