Two Options for Century's Victims

KOMPAS/YUNIADHI AGUNG

Century Bank customers demonstrating for a refund of their money and for the Century case to be solved

KOMPAS.com - The government has come up with two options to solve the problem of the customers of PT Antaboga Delta Securitas who lost their money, which is part of the Century Bank case.

The first option is to help the customers through state funding with the consent of the House of Representatives. The second option is to refund the customers after the Century Bank asset reclaiming, which is being processed by the law, is done.

The two options were stated by the Coordinating Minister for Politics, Law and Security Djoko Suyanto, and the Attorney General Hendarman Supandji, Jakarta, Tuesday. The options were given in response to the recommendation of the House for the government to immediately solve the problem of the Antaboga customers.

"If it's through state funding, then it must have the consent of the House. But, if it's through the asset and funds of Century Bank and Mutiara Bank, then it has to wait till the asset has all been reclaimed, then we can calculate how much the refund is and how much asset is available."

Hendarman Supandji also added that, regarding the Century Bank fund that has been taken abroad, the AGO, police, and Financial Transaction Analysis and Report Center will try to block the assets of Hesham Al Waraq, Rifat Ali Rizvi, and Robert Tantular, which are spread over 12 countries. Their blocked assets are estimated to be around Rp. 3 trillion.

This value is much lower than the initial estimation by the police detective unit, which was around 12 to 14 trillion rupiahs. But the current block is only temporary and can only be processed after there is a stronger ruling from the court.

"It wasn't a miscalculation, it could be due to fluctuating share value. According to Mr. Susno it was Rp. 12 trillion, but the interdepartment team said it was Rp. 3 trillion."

BUSINESS offspring ACHIEVE 600 SOE | SOE Banned Grandchildren Business Forms (ANAK CUCU USAHA BUMN CAPAI 600 | BUMN Dilarang Bentuk Cucu Usaha)

JAKARTA, KOMPAS.com - state-owned enterprises or SOEs are prohibited form company grandchildren so that the structure of the company becomes very inefficient. The ban will be published in the Ministry of SOEs in the near future. 
"We've asked all state enterprises to restructure the children and grandchildren of their efforts, including mandatory reporting Intellectual Property Sheet Officers him. So we are seriously to issue rules that prohibit the establishment of a grandson to keep the effort out of control and difficult to control," SOE Minister said Mustafa Abubakar in Jakarta, Thursday (18/3/2010), after he delivered a key presentation in the Discussion Forum Focused on the Urgency Policy Options Toward Holding BUMN Perkebunan Profitisasi and Increased Competitiveness. 
This problem is considered serious because the children and grandchildren estimated state efforts already reached 600 companies. In fact, the number of listed state-owned companies currently only 139 companies and will be reduced to 89 companies. 
According to Mustafa, it seeks to rule on the prohibition of this business grandchildren forthcoming. This rule will limit the establishment of child-level attempt to three. Each state will be urged to establish at most only subsidiary in level (layer) two. 
"But, if so required, we will provide a highly selective permission. Because we were concerned about the possibility of going out of control and shift assets. If only up to the subsidiary would be easier to control, detect, or identification," he said. 
On the basis of rules that will be published later, the grandson of state-owned businesses will be encouraged to immediately didivestasi or removed from its mother. Grandchildren release program efforts will be regulated in detail the technical rules.

The increase in TDL and Oil Price Inflation could trigger 6 Percent

JAKARTA, KOMPAS.com - Chairman of the Institute for Economy and Society University of Indonesia (LPEM-UI) M Chatib Basri Indonesia predicts inflation in 2010 will be at the level of 6-7 per cent driven by government plans to raise electricity basic tariff (TDL) and the upcoming July 2010 increase in world commodity prices, especially crude oil prices. 

"The increase in TDL inflation could reach 6 percent but with a tendency to increase in world commodity inflation could rise by 7 percent. But I think, hopefully it does not happen," said Chatib after the seminar "The 10th Annual Citi Indonesia Economic and Political Outlook" at the Ritz Carlton Pacific Place, Jakarta, Thursday (18/3/2010). 

According to world commodity prices, especially crude oil prices, which could affect oil prices, very difficult for Bank Indonesia to manage inflation expectations in the range of 5.5 percent according to government targets. 

"Unless BI (Bank Indonesia) to manage inflation expectations well.'s Why inflation management is very important. Inflation in the range of 6-7 per cent do not worry excessively because inflation had previously been in the range of 8-9 percent," he said. 

The inflation rate is fairly low last year (2.78 percent), according to Chatib, as influenced by the falling fuel prices and the administered price is declining. "If now to get a 5.5 percent inflation rate just hard," he explained. 

It said this year the inflation rate can stay awake for supported strengthening the rupiah against the U.S. dollar. Chatib predict the average exchange rate would strengthen USD 9500 per U.S. dollar compared to last year at an average level of Rp 10,200 per U.S. dollar. 
Besides the possibility of Bank Indonesia will maintain its benchmark interest rate or BI rate at the level of 6,5-7 percent until the end of the year.

Hatta: Do not the rich who enjoy subsidies

JAKARTA, KOMPAS.com - Government restrictions on finalizing oil consumption of subsidized fuel for private vehicles. Coordinating Minister for Economic Hatta Rajasa rate, the method is very appropriate restrictions. With this method, providing targeted subsidies expected.

Ideally, added Hatta, subsidies given to the poor. "Until now there has been no decision about that, though perfectly reasonable. It should be considered an appropriate subsidy. Do not the rich who enjoy it," said Hatta at the Office of the Ministry of Economic Affairs, Jakarta, Friday (19/3/2010).

So far, more than 50 percent of the fuel subsidy enjoyed by the people can afford. Likewise, the electricity subsidy enjoyed by 52 per cent of people can afford. For that, he appealed to citizens who belong to afford to pay for fuel and electricity prices according to economics.

"Ideally, pricing policy should be appropriate so as not to distort. If it distorts. We have to think that targeted subsidies," said Hatta.

There will be Special Account for Taxpayers

JAKARTA, KOMPAS.com - Government plans to create a special account for the taxpayer. Special account manager is the Directorate General (DG) Taxes. "Every taxpayer will have their own account number which can be accessed anywhere via the Internet," said Finance Minister Sri Mulyani Indrawati said here on Wednesday (17/3/2010).

This special account, Sri Mulyani said, to facilitate the taxpayers. Armed with this account, the entire tax administration services, ranging from registration, billing, until the payment, can be integrated in a single door.

According to the Minister of Finance, the tax administration system is one of the modern way of boosting tax revenue. Proven tax revenues increased sharply from Rp 580 trillion in 2008 to Rp 658.7 trillion in 2009 and then, once the tax office to apply modern administrative system.

That is why, Sri Mulyani promised, the government will continue to develop information and data systems of taxation, in order to enhance the potential for tax revenue and avoid a tax crime.Ministry of Finance also consistently supervise and improve the performance of the Directorate General of Taxes. (Hans Henricus / Cash)

NEVER TELL YOUR PIN TO OTHER PEOPLE

NEVER TELL YOUR PIN TO OTHER PEOPLE

ATM Breached with The Phone Number 08139849799

SYAHRUL HIDAYAT

Illustration SRIWIJAYA POST/SYAHRUL HIDAYAT

KOMPAS.com — Another ATM has been compromised, causing loss on a customer up to millions of rupiahs. The MO was by faking a call center in Semarang, Central Java.

The victim is Erlita Dewi Kristiana, 26, who reported to the Semarang police on Wednesday. She stated that it happened when she was about to withdraw money from a BNI ATM in front of the Sarinah supermarket, in Ngaliyan, Semarang.

"When I put in my ATM card into the machine, the card got stuck halfway, as if something was holding it."

She admitted that she panicked, and then a male stranger who was queueing behind her suggested that she called the call center at the following number: 08139849799, which was also stated on a sticker near the ATM.

"When I contacted that number I spoke to a man, Handoko, who claimed to be from the bank and that he would assist me."

Handoko then asked for the victim's PIN number in order to block her stuck card.

Afterward the victim reported the case to the Karangayu BNI branch. The bank then asked her to make a formal report at the local police station. The police suggested her to include a print out of her transactions. From the print out she later found out that Rp. 5.4 million was missing. The money was withdrawn from a different ATM to the first in seven withdrawals.

A similar MO has happened in Semarang before actually.

It's suspected that the crime is done by an organization that strikes in big cities and keeps on moving to evade the police. (Bnj/Antara/C17-09)

Billabong Sues Local Businessman

Billabong Sues Local Businessman

billabong.com

 KOMPAS.com — Another foreign company is pressing charges at the Commercial Court of Jakarta. Rocket Trademarks Pty Ltd, a clothing producer most famous for the Billabong brand, is suing a local businessman in regards to the registering of the Element brand.

The case started in December 2009. At that time Rocket Trademarks, from Australia, was about to register the Element brand for class 25 goods, or clothes, at the Directorate General for Intellectual Properties of the Department of Justice and Human Rights. They were surprised to find out that the brand has been registered, for the same class, under the name of Kenny Wirya, since July 17, 2007.

Rocket Trademarks finds this unacceptable. Rocket's legal representative, Gunawan Suryomurcito, considers Kenny's registering the Element brand was based on malicious intentions. Because the brand has been registered to hitch on Rocket's Element brand that has already gained popularity first.

Gunawan stated that Rocket's Element brand came first and has been registered in various countries, such as Australia, Brazil, Chile, Colombia, Japan, Israel, UK, US, France, and China (Hong Kong). Rocket has filed in a request to annul Kenny's register of the Element brand. They consider Kenny to be fooling the public into believing that his Element brand is connected with Rocket's. Besides, as long as Kenny is registered, Rocket can't sell their Element products in Indonesia.

Kenny Wirya on the other hand, is refuting Rocket's claim. The businessman from Penjaringan, North Jakarta, is filing a counter claim against Rocket. Happy Sihombing, Kenny Wirya's attorney, stated that his client is demanding a compensation from Rocket for using Kenny's Element brand without a permit, and thus putting Kenny at a disadvantage.

Happy stated that Kenny is suing Rocket for Rp. 5 billion for material losses, and another Rp. 5 billion for immaterial losses, in accordance to the Law no. 15/2001 on brands, which states that a registered brand is protected for the next 10 years. (Yudho Winarto/Kontan/C17-09)

Nestle Drops Indonesian Company after Greenpeace Demos

Nestle Drops Indonesian Company after Greenpeace Demos

(AFP/Greenpeace/Simon Lim)

This photo provided by Greenpeace International shows Greenpeace activists protest at Nestle headquarters in Beijing. Indonesian palm oil giant Sinar Mas rejected claims of environmental vandalism Thursday after Nestle, the worlds biggest food company, dropped it as a supplier following protests by Greenpeace.

KOMPAS.com - Indonesian palm oil giant Sinar Mas rejected claims of environmental vandalism Thursday after Nestle, the world’s biggest food company, dropped it as a supplier following protests by Greenpeace. It was the second embarrassing blow to Sinar Mas in three months after Anglo-Dutch company Unilever severed ties with it in response to Greenpeace claims it is destroying rainforests.

Greenpeace activists held protests Wednesday at Nestle’s headquarters and factories in Britain, Germany and the Netherlands, linking the company’s Kit Kat confectionery to the destruction of orangutan habitats. “Considering its size and influence, it should be setting an example for the industry and ensuring its palm oil is destruction free,” Greenpeace said in a statement.

“Instead, Nestle continues to buy from companies, like Sinar Mas, that are destroying Indonesia’s rainforests and peatlands.” Rampant deforestation in Indonesia makes it one of the biggest emitters of greenhouse gases in the world and threatens habitats of endangered species like orangutans, tigers and rhinos.

Nestle responded immediately to the protests, dropping Sinar Mas and repeating its commitment to using only Certified Sustainable Palm Oil by 2015, “when sufficient quantities should be available”. “Nestle has replaced the Indonesian company Sinar Mas as a supplier of palm oil with another supplier for further shipments,” it said.

“We confirm that Nestle has only bought from Sinar Mas for manufacturing in Indonesia, and no palm oil bought from Sinar Mas has been used by Nestle for manufacturing in any other country.” Sinar Mas Agro Resources and Technology (SMART) president director Daud Dharsono denied that its palm oil plantations were damaging the environment.

“We are committed to applying responsible land clearing and best practices in our plantations. We’ve been implementing best practices since the early 1980s,” he told AFP.

“We’re ready to have a dialogue with Greenpeace to clarify their report. However, we haven’t received any official notification from Nestle that it has dropped us as their supplier of palm oil,” he added.

Greenpeace Southeast Asia campaigner Bustar Maitar said Nestle must also stop buying Sinar Mas’s palmoil from third parties. “Despite their announcement cancelling their direct orders with Sinar Mas, Nestle will still be using palm oil from Sinar Mas in Kit Kats because they’ll still be getting it from their other suppliers,” he said.

“The Greenpeace campaign will continue until Nestle cuts the Sinar Mas group from its supply chain completely.” Indonesia is the world’s biggest producer of palm oil, which is used in the manufacture of products including margarine, soups, ice-cream, chocolates and beauty products.
Indonesian officials have said they aim to more than double the country’s crude palm oil output to 40 million tonnes by 2020 through increased yields and more plantations.

The plans have been opposed by environmental groups, who say the nation’s forests are vital carbon sinks in the fight against climate change and an irreplaceable source of biodiversity. Of the 45 million tonnes of annual, global crude-palm-oil output, only 2.3 million tonnes has been certified by the palm oil watchgroup Roundtable for Sustainable Palm Oil as having been produced through sustainable methods. Of the 2.3 million tonnes, Indonesia accounts for only 400 tonnes.

Obama Visits will Give Positive sentiment to Market

JAKARTA, KOMPAS.com - state visit President of the United States (U.S.) Barack Obama to Indonesia is expected to provide short-term positive sentiment for the financial markets (money markets and stocks). Economist phrased so Econit Hendri Saparini Persda Network when contacted from Jakarta, Tuesday (16/3/2010). 

"The visit of the president of the state developed countries like the U.S. it will usually give a positive sentiment to the short-term financial markets but what could be the long term? That's the critical question," said Hendri. 

He said developed countries including the United States this year will experience a rebound (the economy started to recover). This makes interest rates and other financial instruments will be improved. If that happens, go Hendri, it will attract potential foreign funds in domestic financial markets returned to the United States. 

"If the Indonesian government bond yield back to that (funds in the financial sector) is not running then this loss for the people of Indonesia for the current bond we have very high yield of 7 to 8 percent. While in the nation's 1.5 percent. And countries like Philippines for example is only 3.5 percent. If that happens then what will happen is a financial bubble, "said Hendri. 

He said the government policy did not always have to keep the financial sector, but then forget about the real sector. "What to look for a breakthrough is how to link it (link) between the financial sector and real sector,. In the last five years there is a missing link between the financial sector and real sector," he said. 

However, Hendri Saparini looking financial markets will still wait for the arrival of Obama's schedule clarity. "For some time schedule and location changes will be visited. Of course, this information will be a big question. If a state visit, of course, in general, visited the country when it was considered important. When many people think is true in Indonesia are considered crucial for the U.S. economy? " he said.

Rupiah Strengthens against US Dollar

Rupiah Strengthens against US Dollar

KOMPAS/LASTI KURNIA

Illustration

KOMPAS.com - The rupiah strengthened against the US dollar in the Jakarta interbank spot market here on Monday morning as investors actively bought the local unit to purchase shares at the Indonesian Stock Exchange (BEI). The Indonesian currency traded Rp9,145-Rp9,155 per US dollar, up 35 points from Rp9,180-Rp9,190 at the market’s close a day earlier.

There were many positive factors which bolstered the rupiah’s appreciation until it reached the level of below Rp9,150 per US dollar, Farial Anwar, a domestic money market observer, said. Foreign investors still considered Indonesia a more profitable market than in some other Asian countries, he said.
     
They particularly grabbed the government’s bonds and Bank Indonesia’s certificates which transactions went up from day to day, he said. "We are optimistic that the rupiah still has a big chance to reach the level of Rp9,000 per US dollar," he said.

Foreign investors preferred to be active in Indonesia’s market than those in the United States and Europe because the US and Europen economy were still uncertain, he said. He believed that it would be better for the rupiah to move upward gradually in order not to negatively affect the country’s exports.

Carlos Slim overtakes Bill Gates in world rich list

Steve Forbes: "Carlos Slim ... has put together quite an empire"

Mexican telecom giant Carlos Slim has topped Forbes magazine's billionaire's list - the first time since 1994 that an American has not led the rankings.

Mr Slim's fortune rose by $18.5bn (£12.4bn) last year to $53.5bn.

That beat Microsoft founder Bill Gates ($53bn) into second place, with US investor Warren Buffett ($43bn) third.

In 2009 332 names left the list after a tough year, but the total number of billionaires on this year's list rose from 793 to 1,011, Forbes said.

'Dominating businesses'

A spokesman for Carlos Slim refused to confirm the Forbes estimate of the Mexican tycoon's wealth, saying they did not "waste their time" on such calculations, but he welcomed the result.

"We're pleased that he has been considered the best businessman of the world," spokesman Arturo Elias told the BBC. "It means there is trust among the investors."

Forbes magazine's chief executive Steve Forbes told the BBC that Mr Slim had been slowly climbing the rich list for a number of years.

"He has been dominating businesses in Mexico, and businesses in the US as well," Mr Forbes said.

"He foresaw the rise in telecommunications, particularly cell phones. And he is also big in cement."

The year's biggest gainer, Brazilian mining tycoon Eike Batista, broke into the top 10 for the first time.

He came in at number seven, having boosted his wealth by $19.5bn to $27bn.

France's Bernard Arnault ($27.5bn), the man behind the world's biggest luxury goods firm LVMH, also moved back into the top 10, increasing his fortune by $11bn to $27.5bn.

Their mounting wealth helped to push Ikea's Ingvar Kamprad and Theo Albrecht - one of the men behind Aldi - out of the top 10.

Asian rise

One of the most notable aspects of the Forbes list in recent years has been the growth in Indian and Chinese billionaires, as the economies of the two countries have grown strongly.

CARLOS SLIM Full name - Carlos Slim Helu Age - 70 Widower with six children Family empire now controls more than 200 companies Controls more than 90% of Mexico's phone landlines Other interests include Inbursa financial group and the Grupo Carso industrial conglomerate Profile: Carlos Slim China billionaires 'second to US' The internet billionaire rich list

This year there are 41 Indian billionaires, and 60 from China.

The richest Indian is Mukesh Ambani in fourth place. Worth an estimated $29bn, he owns Reliance Industries, India's largest company. Its business interests range from oil and gas, to food and clothing.

China's wealthiest billionaire - excluding those based in the Hong Kong special administrative region - is Zong Qinghou.

In 103rd place on the list, Mr Zong is worth an estimated $7bn. He owns Hangzhou Wahaha, China's largest soft drinks company.

Upturn

In a sign that the global economy could be improving, the average net worth of the world's billionaires is now $3.5bn, up $500m from last year.

Furthermore, 97 names made their debut while a record 164 returned to the list in 2010 - including Facebook founder Mark Zuckerberg ($4bn), who, aged 25, also regained the title of youngest billionaire.

The news was a far cry from 2009 when the financial crisis took its toll on the world's richest people, wiping 332 names off the list and an average of 23% off the wealth of the remaining billionaires.

Falling stock markets and collapsing commodity prices were blamed. Russia's ultra-rich appear to have recovered from last year's commodity-related losses, however, with 62 billionaires on the 2010 list, compared with 27 last year.

Consumer focus

In Europe, shopping dominated the money list with six of the top 10 European billionaires making their money in retail and three more in consumer products.

Top of the list was Bernard Arnault (7) from LVMH, closely followed by Amancio Ortego of clothes retailer Zara (9), Karl Albrecht of cut-price supermarket Aldi (10), Igvar Kamprad and family (11) of Ikea and Stefan Persson (13) of discount retailer Hennes & Mauritz.

In the UK, the sixth Duke of Westminster Gerald Grosvenor (45) remained the wealthiest Briton with a net worth of $12bn as he improved his finances by $1bn despite the UK property slump.

Meanwhile, two Britons also made their debut - real estate investor Xiuli Hawken ($2.4bn) and hedge fund manager Alan Howard ($1.8bn).

On the up

The improving health of the global economy meant that 55 countries were represented in the Forbes list - with Pakistan (Mian Muhammad Mansha, number 937) and Finland (Antti Herlin, number 773) adding their first billionaires.

Strengthening stock markets and several large public offerings during the past year helped Asia close the gap with Europe.

A total of 234 Asian billionaires were featured in the 2010 list compared with 248 from Europe.

Russia's reversal of fortunes in the past 12 months also helped Moscow to inch up the league of cities that are home to the most billionaires after it slipped to third place last year.

In 2010, New York remained at the top of the pile with 60 ultra-rich residents, Moscow was second with 50 billionaires and London third with 32.

Chinese inflation hits 16-month high

Spending on New Year celebrations may have lifted prices last month

Chinese inflation hit a 16-month high in February, causing economists to call for the government to tighten the economy to prevent overheating.

The annual rate of consumer price inflation rose to 2.7% in February, up from 1.5% in January, and ahead of analysts' expectations of 2.3%.

UBS economist Tao Wang said China may now raise interest rates, which have been on hold since December 2007.

Others said inflation was simply lifted by the New Year celebrations.

We believe it is vital for the government to take more decisive measures to tighten the economy to prevent overheating Goldman Sachs economists Yu Song and Helen Qiao

Activities to mark the Chinese New Year take place over a number of days, and see a big rise in spending by families across the country.

As the New Year in 2009 fell in January not February, economists say the rate of increase in consumer prices in February 2010 was boosted as it is being compared with weaker spending last year.

'Rate rise soon'

Despite the impact of the Chinese New Year timing, Ms Tao said interest rates were still likely to rise.

"Our forecast is that a rate hike should happen relatively soon, if not this month then probably early in the second quarter," she said.

Goldman Sachs economists Yu Song and Helen Qiao said it was now "vital for the government to take more decisive measures to tighten the economy to prevent overheating".

However, China's National Bureau of Statistics (NBS) reiterated its position that the economy was not expanding too quickly.

"We believe this year's price rises will be mild and controllable," said NBS spokesman Sheng Laiyun.

"Judging from the current situation, investment, consumption and foreign trade are better co-ordinated, so we don't see any signs of economic overheating."

Lending curbs

Despite the NBS's comments, the Chinese government has already moved to prevent the economy growing too fast.

While interest rates may have remained unchanged for more than two years, the central bank has ordered commercial lenders to increase their capital reserves three times since last December.

Such a move effectively limits the amount of money the banks can lend to companies.

On Wednesday, official figures showed that China's exports in February were up 46% from a year ago, which was more than analysts' forecasts.

China's economy grew by 8.7% last year, exceeding government expectations.

Barack Obama urges China to relax grip on its currency

President Obama believes China could help protect US jobs

US President Barack Obama has urged China to change its currency strategy to help re-balance the global economy.

In a speech in Washington, Mr Obama said China should move to a "more market-based exchange rate" so that US exporters are not disadvantaged.

US manufacturers have complained that the yuan is being kept artificially low, making imports to China dearer.

Mr Obama's comments risk upsetting Beijing, which regards currency issues as an internal matter.

'Essential contribution'

"For too long, America served as the consumer engine for the entire world. But we are rebalancing. We're saving more. We all need to rebalance," Mr Obama said.

Currently, developing countries like China and India export more to developed economies like the US and Europe than they import.

In China's case, this trend is supported by the low value of the yuan, which makes Chinese exports cheaper while rendering foreign imports more expensive.

Freeing up the exchange rate would effectively raise the value of the yuan and benefit US exporters.

"Countries with external deficits need to save and export more. Countries with external surpluses need to boost consumption and domestic demand," Mr Obama added.

"As I've said before, China moving to a more market-oriented exchange rate would make an essential contribution to that global rebalancing effort."

Currency manipulator?

Big business in the US has told Mr Obama to get tougher with China on trade and currency issues.

In his speech, to the Import-Export Bank's annual conference, Mr Obama said that "at a time when millions of Americans are out of work, boosting our exports is a short-term imperative.

"When other markets are growing, and other nations are competing, we need to get even better. We need to secure our companies a level playing field," he said.

Despite Mr Obama's carefully-chosen words, they are unlikely to go down well in Beijing.

US-China relations have soured recently, largely over Mr Obama's meeting last month with the Tibetan spiritual leader, the Dalai Lama, and over arms sales to Taiwan.

And relations could be about to worsen. The US Treasury Department is considering whether to label China a "currency manipulator" in a report due on 15 April.

Last Saturday China's central bank released a statement pledging to keep the country's currency stable throughout 2010.

Beijing fears that a change in its exchange rate will slow economic growth. Chinese exports fell 16% last year.

Some nurses paid more than family doctors

By Parija Kavilanz, senior writerMarch 11, 2010: 2:31 PM ET

NEW YORK (CNNMoney.com) -- Despite the growing shortage of family doctors in the United States, medical centers last year offered higher salaries and incentives to specialist nurses than to primary care doctors, according to an annual survey of physicians' salaries.

Primary care doctors were offered an average base salary of $173,000 in 2009 compared to an average base salary of $189,000 offered to certified nurse anesthetists, or CRNAs, according to the latest numbers from Merritt Hawkins & Associates, a physician recruiting and consulting firm

And the firm's projections for 2010 indicate that the average base salary for family physicians will be about $178,000 compared to $186,000 for CRNAs.

CRNAs are advanced practice nurses who administer anesthesia to patients. An important distinction between CRNAs and anesthesiologist is that when anesthesia is administered by a nurse anesthetist, it is still recognized as the practice of nursing rather than a practice of medicine

"It's the fourth year in a row that CRNAs were recruited at a higher pay than a family doctor," said Kurt Mosley, staffing expert with Merritt Hawkins & Associates.

CRNA salaries have trended higher as the number of surgical procedures picked up pace over the past few years, fueling demand for anesthesiologists and anesthetists.

0:00 /3:17Doctors opt out of Medicare

Mosley said medical doctors and specialists, including anesthesiologists, typically have four to five years more of medical training than CRNAs. After spending a lot of time speaking with physicians around the country, he said many family doctors are starting to feel like "second-class citizens."

This type of income disparity "won't make them feel better," he said. Most primary care doctors say they're already struggling to make ends meet as their costs rise faster than what Medicare and private insurers are paying them .

Looking at these compensation trends, the biggest concern for the nation's health care system is how to encourage more medical students to pick primary care as their specialty at a time when the nation is already facing a shortage of about 60,000 primary care doctors.

"The demand for primary care doctors will increase twofold when health reform happens and millions of more Americans have access to health care," said Mosley. "Who is going to triage these patients? It's not the neurologist or pulmonologist. It has to be the primary care doctor."

The American Association of Nurse Anesthetists (AANA) maintains that CRNAs are being fairly compensated.

"From our perspective, we are fairly compensated for the level of responsibility that we shoulder," said Lisa Thiemann, senior director of professional services with the AANA.

"We are at the head of the patient's bed. We deliver anesthesia and we keep the patient safe," said Thiemann, who has been a CRNA for 14 years.

"Once nurses and physicians arrive at anesthesia training, we use the same textbooks and same cases. The training is not too different between the two groups," she said. "We all deliver anesthesia the same way."