13th Month Salary a Luxury Amid Covid-19 Pandemic

KOMPAS/WAWAN H PRABOWO

Civil servants participate in a ceremony for the commemoration of the 47th Anniversary of the Indonesian Civil Servants Corps (Korpri) at the Gelora Bung Karno sports complex in Senayan, Jakarta, on Thursday (29/11/2018).

The government in August disbursed around Rp 20 trillion for the 13th month salary of civil servants. This comes at a time when many people at the grassroots are suffering from the impact of the Covid-19 crisis and have not received social assistance from the government.

The policy on the 13th month salary for state civil servants (ASN) is outlined in Government Regulation No. 44/2020 concerning the provision of salaries, pensions, allowances or the 13th salary in 2020 to civil servants (PNS), Indonesia Military (TNI) personnel, police officers, non-PNS and recipients of pension or benefits. President Jokowi signed it on Friday (7/8/2020).

This bonus was disbursed to all ASN groups, from the lowest level to the highest, or echelon I officials. Among those who received the 13th salary were the chairpersons, deputy chairpersons and judges in all judicial bodies as well as special staff within the ministries, ad hoc judges and leaders or non-civil servant employees at public broadcasting institutions.

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An annex to the regulation stipulates that the policy was intended as a fiscal stimulus in the government\'s efforts to maintain the purchasing power of civil servants, TNI personnel, police officers, non-PNS employees and pension recipients during the Covid-19 pandemic.

As stated by Finance Minister Sri Mulyani Indrawati at a virtual press conference in Jakarta on Tuesday (21/7/2020), the total budget for the 13th salary, allowances and pensions was Rp 28.5 trillion.

It consists of the 13th salary and allowances amounting to Rp 20.62 trillion and the 13th pension worth Rp 7.86 trillion. For the 13th salary and allowances, Rp 6.73 trillion was channeled to ASN of the central government and Rp 13.89 trillion to ASN of regional administrations.

KOMPAS/NINA SUSILO

Caretakers of the Indonesian Civil Servants Corps (Korpri) management pose for a photograph with President Joko Widodo (center) at Merdeka Palace, Jakarta, on Tuesday (26/2/2019).

Difficult situation

Amid the difficult situation due to Covid-19, tens of millions or perhaps hundreds of millions of people need government assistance. Of course, given the country\'s tight financial situation and the duration of the crisis, the government must wisely set the programs and the targets in allocating the budget. Therefore, the emergency aspect should be the main consideration in determining a policy.

State revenue has been dragged down this year by the slowing domestic and world economy as a result of the Covid-19 crisis. For this reason, the government widened the 2020 state budget deficit to finance the state administration, especially to deal with Covid-19 and its economic impact.

The targeted state budget deficit for 2020, which was originally Rp 307 trillion or 1.76 percent of the gross domestic product (GDP), was expanded more than threefold to Rp 1,039.2 trillion or 6.34 percent of GDP.

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The budget for handling Covid-19 is Rp 695.2 trillion. This allocation consists of Rp 87.55 trillion for health, Rp 203.9 trillion for social protection, Rp 120.61 for business incentives, Rp 123.46 trillion for micro, small and medium enterprises (MSMEs), Rp 53. 57 trillion for corporate financing and Rp 106.11 trillion to be disbursed through ministries and institutions as well as local administrations.

Programs within the social protection budget include the Family Hope Program for 10 million families, staple food assistance for 20 million recipients, social assistance for 1.9 million Greater Jakarta residents, cash assistance for 9 million residents outside Greater Jakarta, pre-employment cards for 5.6 million recipients, productive presidential assistance (Banpres) for 12 million micro-entrepreneurs and subsidized salaries for 13.8 million private-sector workers with salaries below Rp 5 million per month.

Tens of millions of citizens were included and enjoyed the government program. However, due to the massive Covid-19 crisis, there are still many underprivileged people who need it but are not covered by any of the social assistance programs.

KOMPAS/RONY ARIYANTO NUGROHO

A community supervisory noncommissioned (Bhabinkamtibmas) officer asks residents through a loudspeaker to queue for the disbursement of stages 4 and 5 of the batch II of social assistance at the Ciampea Post Office in Ciampea district, Bogor regency, West Java, Sunday (6/9/2020).

If the government in August disbursed the 13th salary to the ASN, of course, it is definitely not wrong. However, the question is not about right or wrong, but is it appropriate or inappropriate?

Regarding the 13th pension payment, perhaps we can all agree that the retired officers deserve it in a difficult situation. However, with regard to the 13th monthly salary for all ASN groups who are still employed, it is difficult not to say that the government is insensitive to the people\'s difficulties.

For lower-level ASN, such as the non-permanent teachers or Puskesmas staff in rural areas, the 13th allowance or salary is still reasonable. They deserve it in this difficult situation. But, for middle- and upper-level ASN, is the bonus urgent?

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To get a clearer view, let\'s compare the 13th month salary policy with a number of government’s social assistance programs. For private workers or laborers, the government provides a wage subsidy program. The value is Rp 600,000 per month per person for four months or a total of Rp 2.4 million per person. The category of recipients is also limited, namely workers with salaries below Rp 5 million per month.

For the ASN, however, it is not subsidies, but the 13th salary. This program was distributed to all ASN groups, from the lowest rank to the top. The chairpersons, deputy chairpersons and judges in all judicial bodies, as well as special staff within the ministry, ad hoc judges and leaders or non-civil servant employees at public broadcasting institutions also receive it.

The 13th salary has indeed become an annual program. However, that does not mean it cannot be reallocated (for other purposes). The President himself at the beginning of the Covid-19 outbreak, around April, had instructed a budget reallocation to be focused on handling Covid-19.

The question is not about right or wrong, but is it appropriate or inappropriate?

LAILY RACHEV/BIRO PERS SEKRETARIAT PRESIDEN

President Joko Widodo speaks at an event to give presidential assistance to micro and small business entrepreneurs in the province of Aceh on Tuesday (25/8/2020).

Also, compare it to the presidential assistance for productive micro-businesses. The funds for the additional working capital of micro entrepreneurs are valued at Rp 2.4 million per person. Meanwhile, the monthly salary for Rank IIIb civil servants is around Rp 7 million and for Rank IVd or IVe with an echelon I position can be around Rp 35 million.

Just for the record, quite a few echelon I officials also serve as commissioners in state-owned enterprises so that they get an additional salary that is much higher than the ASN salary.

At the same time, there are still millions or even tens of millions of people who have not received the government assistance. They clearly need more assistance than the middle- and upper-level ASNs.

It\'s hard

Amid the Covid-19 crisis, there are only two stories in the community related to their income, namely those whose income is stable and those whose income dropped or zero. To have a fixed and steady monthly income like before Covid-19 is already extraordinary. And, unexpectedly, the ASN get a windfall, the 13th month salary. This is beyond very, very extraordinary.

Let\'s check in the field. In the midst of the Covid-19 crisis, tens of millions of workers or laborers in the formal sector had their salaries cut, were furloughed, got their work contracts terminated or were laid off. For the informal sector workers, there is only one story: their turnover plummeted or even dropped to zero.

In such a situation, there is no story about their company giving bonuses or even extra salaries to employees or workers. There is also no story about businesses in the informal sector seeing increasing turnover. If there is any, perhaps it’s only a handful, namely businesses related to telecommunications and the delivery of goods. The rest is down and dying.

KOMPAS/AGUS SUSANTO

Jobseekers walk past the JIEP Pulogadung industrial area in East Jakarta on Tuesday (8/9/2020). The Covid-19 pandemic has severely hit the national economy and prosperity. In addition to the projected decline in economic growth, the number of unemployed and poor people is expected to increase.

Priyono, the personnel manager of a company in Jakarta, stated that the turnover of his company plummeted during Covid-19. To survive, the company has taken various steps to save money, including by cutting food and transportation allowances. This affected all employees, from the lower level to the leadership level.

In some regional offices, there is a system of proportional pay cuts. There are even offices that apply wage cuts of up to 50 percent to all employees. "What is clear is that all are subject to cuts," said Priyono.

In addition, companies also reduce employees. This was done, among other things, by reducing outsourced employees in the security, general assistance and cleaning departments. The company also did not extend the contracts of non-permanent employees.

In some of the company’s networks, they also temporarily closed operations or went into hibernation. "This is all an effort to reduce costs because the income has dropped dramatically. All companies must make cost-cutting policies at this time. This means that many workers have lost their jobs,” said Priyono.

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According to Statistics Indonesia (BPS) data, open unemployment in February 2020 amounted to 6.88 million people or 4.99 percent of the total workforce. Covid-19 has definitely inflated the number of unemployed. Since April, a wave of layoffs has spread across a number of sectors, from manufacturing to services.

Center of Reform on Economics (CORE) Indonesia projected that open unemployment in the second quarter of 2020 would explode in three scenarios, namely mild, moderate or severe.

Kompas/AGUS SUSANTO

Shanties are seen on the banks of the Ciliwung River in Bidara Cina, Jatinegara, East Jakarta, on Monday (20/7/2020). The economic havoc caused by the Covid-19 pandemic has seen many people slide into poverty.

The scenarios project nationwide open unemployment (TPT) to increase by 4.25 million people, 6.68 million people or 9.35 million people respectively. Based on this assumption, the TPT in the second quarter of 2020 would reach 8.2 percent, 9.79 percent or 11.47 percent.

Fatur Rohman, 28, a former factory worker in Surabaya, East Java, has been unemployed for four months. As Covid-19 spread, he and fellow workers at first worked in turn on a shift system. As of 27 April 2020, workers began to be furloughed without pay.

Then, in June, the company announced layoffs. Even though he has worked for eight years, Rohman only received one-month severance pay.

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Rohman is the father of a baby that is less than one-year old. His family was not covered by any government program, including the Pre-Employment Card. "There is no government assistance program [that I receive]," said Rohman.

In the informal sector, Yanto, 42, an ojek driver in Sleman, Yogyakarta, has desperately tried to get loans since March because his family\'s income has dropped.

Before the Covid-19 pandemic, his average income was Rp 100,000 per day. During the Covid-19 pandemic, the average income was zero. If he is lucky, he can earn Rp 30,000 a day.

KOMPAS/BAHANA PATRIA GUPTA

Residents access the prakerja.go.id website to register for the Pre-employment Card program at a service command post at the East Java Manpower and Transmigration Office in Surabaya on Monday (13/4/2020).

Meanwhile, his wife\'s kiosk used to generate turnover of Rp 500,000 per day. Now it only generates an average of Rp 100,000 per day. "[Demands for] ojek is still low. The stall [sales] are still low," said Yanto, who has one child.

When he heard about the government’s plan to give salary subsidies for workers, Yanto looked for information here and there. He wanted to get the government assistance, but in fact he was not included in the category of beneficiaries.

Based on Manpower Ministry Regulation No. 14/2020 concerning the Guidelines for Providing Government Assistance in the Form of Salary/Wage Subsidies for Workers/Laborers in Handling the Impact of Covid-19, the recipients are workers in private companies.

The data used by the government comes from BPJS Jamsostek. Yanto is registered as a BPJS member. However, he is not a private-sector worker, but an ojek driver, so Yanto is not on the government\'s radar.

Later, he heard about the presidential assistance (Banpres) for productive activities. He was proactive in seeking information to take part in the program.

"But I don\'t know how to get it. Do I need to register or what? If I have to register, where should I register? What is clear is that I have a small kiosk at home,” said Yanto.

BIRO PERS SEKRETARIAT PRESIDEN

President Joko Widodo provides working capital assistance to small and micro traders in the backyard of the Bogor Presidential Palace, Friday (24/7/2020).

President Jokowi in several limited meetings at the Presidential Palace said there should be “a sharing of the pain” among the government and state institutions in dealing with the Covid-19 crisis.

The President, at the Plenary Cabinet Session at the State Palace in Jakarta on Thursday (18/6/2020), also expressed his anger because he considered a number of ministries and state institutions to be insensitive to the people and to the current situation.

"The atmosphere in the past three months and in the future should be an atmosphere of crisis. All of us who are present here as the leaders and as people in charge should be responsible for the 260 million people of Indonesia. Please underline this. And please show the same feeling. We are the same. We have to show the same sense of crisis,” said the President.

However, two months after the meeting, the President disbursed the 13th month salary to ASN at a time when tens of millions of families have not received government assistance.

Is this sensitive? Is this what we call “sharing the pain”, when the President gives a present or bonus to ASN, funded from state debt, and when formal and informal businesses are dying?

Meanwhile, Yanto, who is an ojek driver, Rohman who is unemployed, and millions of other Indonesians who are economically underprivileged are still off the government\'s radar. If only they were ASN, maybe this month they wouldn\'t have to desperately try to get loans.

However, even if they get the loans, they have to pay them off themselves rather than “freely obtaining” them like the 13th month salary for ASN, which is sourced from state debt and becomes the responsibility of all Indonesian people to pay off.