Jakarta (ANTARA) - The Minister of Home Affairs, Tito Karnavian,\nstated that the transition period for the implementation of the maximum\n30 per cent limit on personnel expenditure from the Regional Revenue and\nExpenditure Budget (APBD) will be extended.<\/p>\n
Tito, during a working meeting with Commission II of the Indonesian\nHouse of Representatives (DPR RI) in Jakarta on Monday, said that\nextending the transition period is one of the legal mechanisms to\naddress salary issues for Government Employees with Work Agreements\n(PPPK).<\/p>\n
This relaxation, he noted, was the result of a meeting between the\nMinister of Home Affairs, the Minister of Finance, and the Minister of\nState Apparatus Utilization and Bureaucratic Reform on 7 May 2026.<\/p>\n
According to Tito, this policy will be regulated within the 2027\nState Budget (APBN) Law, rather than through an amendment to Law Number\n1 of 2022 concerning the Financial Relations between the Central\nGovernment and Regional Governments (HKPD). The government opted to\ninclude the extension provision in next year\u2019s APBN Law because revising\nthe HKPD Law was deemed too time-consuming and procedurally complex.<\/p>\n
\u201cAt the very least, it will be extended by one year. This provides\nmore time to deliberate and work. I expect this law to be released\naround October or November,\u201d he said.<\/p>\n
Consequently, Tito added, the principle of lex posterior derogat\nlex priori<\/em> will apply, meaning the newer regulation (lex posterior)\nwill supersede or override the older regulation (lex priori).<\/p>\n The 30 per cent limit on personnel expenditure from the APBD is\ncurrently regulated under Article 146, paragraph (1) of the HKPD Law.\nThe percentage can be adjusted via ministerial decree, as stipulated in\nArticle 146, paragraph (3).<\/p>\n In response to recent dynamics, the Minister of Home Affairs, the\nMinister of Finance, and the Minister of PANRB have studied options to\nadjust the percentage limit for regional personnel expenditure.<\/p>\n Initially, Tito proposed increasing the personnel expenditure limit\nto 40 or 50 per cent to align with regional fiscal capacities. However,\nthe Minister of Finance proposed maintaining the 30 per cent limit but\nproviding a relaxation of the transition period.<\/p>\n \u201cIf we open it to 40\u201350 per cent, there is a fear that regional heads\nmight become complacent and fail to seek creative ways to increase Local\nOriginal Revenue (PAD) or improve the health of Regional Owned\nEnterprises (BUMD). Therefore, we will stick to 30 per cent for now; let\nthe regions be creative while we evaluate regions that genuinely require\nadditional Transfers to Regions (TKD),\u201d he said.<\/p>\n Meanwhile, Commission II of the DPR RI, in its meeting conclusion,\nstated its support for the agreement reached between the Ministry of\nHome Affairs, the Ministry of PANRB, and the Ministry of Finance to\nextend the aforementioned transition period.<\/p>",
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