Camelia Pasandaran – Claiming to have improved the performance of the Finance Ministry's bureaucracy, the government plans similar reforms in 12 other state institutions next year, Finance Minister Sri Mulyani Indrawati said on Friday.
The agencies targeted include the National Development Planning Board (Bappenas), the Attorney General's Office, the National Police, the Defense Ministry and the Justice and Human Rights Ministry, she said at a briefing on bureaucratic reform at Sahid Jaya Hotel in Central Jakarta.
To gain ground in the crusade against bribery and corruption within state institutions, Sri Mulyani said, the government would focus on nine programs, including increased pay for civil servants, management reform, the eradication of overlapping duties and retooling human resources.
The government, she noted, had already raised civil servant salaries by 21 percent to a total of Rp 161.7 trillion ($17.14 billion) to make officials less susceptible to graft.
"People equate reform to better remuneration. Reform is not only about remuneration," Sri Mulyani said.
"Many employees complain that salaries are insufficient," Sri Mulyani said, adding that though salaries are small, most civil servants receive stipends and perks, such as cars so they can perform their duties and living allowances. But stipends are sometimes not equally distributed, she said.
"The state might pay too much to an employee who does little besides joining flag-raising ceremonies. Salaries should be set based on workload and risks."
She acknowledged that investigations within her ministry had resulted in disciplinary sanctions for 1,961 personnel. They had also revealed a host of methods used to transport bribes.
"Money was being carried in socks, among other methods. At least 150 employees were dishonorably discharged," she said, adding that punishments also included demotion.
The Finance Ministry collects 75 percent of the country's revenue, mainly from income and excise taxes. Sri Mulyani has won renown for her courage in reassigning thousands of employees and for overseeing a complete overhaul of the directorates general within the ministry, namely those overseeing customs and excise, state treasury and taxes.
The finance minister also stressed the need for strict supervision and zero tolerance of violations like bribery that could bring down organizations and destroy the public's trust.
At the same briefing, Home Affairs Minister Gamawan Fauzi noted that part of the problem was employees occupying positions they were not qualified for, with many taking top positions simply because of seniority.
"After being given that [top] position, only then does the person go back to school to meet the needed criteria. They should be qualified first before occupying the position," Gamawan said.
The State Ministry for Administrative Reform has set 2011 as the target to conclude the bureaucratic reform programs.