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JAKARTA - President Susilo Bambang Yudhoyono said the government would increase the basic salaries of civil servants, military and police personnel by seven percent in 2013.
"The increase will be in keeping with the inflation," the president said when delivering the government`s financial notes and the 2013 Draft State Budget in a plenary of the House of Representatives (DPR) here on Thursday.
Yudhoyono said that the government would also resume its policy to provide a thirteenth salary for civil servants, military and police personnel and pensioners. The salary hike will be paid in the new academic year.
"The government is planning a pay hike for judges to a better level in line with their tasks and responsibilities," the head of state said. He said that improvement of state apparatuse prosperity was part of the continuation of the bureaucratic and governance reforms.
In the 2013 Draft State Budget, the government set Rp241.1 trillion for state personnel expenditures, up by Rp28.9 trillion or 13.6 percent from the personnel expenditure ceiling of the 2012 State Budget.
"In the framework of accomplishing the bureaucratic reform programs at the government ministries or institutions and increasing allocations for personnel expenditures, we are also planning to provide a remuneration budget," the head of state said.
The government is planning to set a total revenue of Rp1,507.7 trillion in the 2013 Draft State Budget with an expenditure of Rp1,657.9 trillion, meaning that the 2013 Draft State Budget will have a deficit of Rp150.2 trillion, or about 1.6 percent of the Gross Domestic Product (GDP). The deficit declined by 2.23 percent if compared with that of the revised 2012 state budget.
The 2013 Draft State Budget was set based on the assumptions of economic growth of 6.8 percent, inflation of 4.9 percent, three-month state debenture interest rate of five percent, oil price of US$100 per barrel and oil lifting of 1.36 million barrels equivalent oil per day.
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