Home Affairs Minister Tito Karnavian has requested that local\ngovernments carry out budget efficiencies to prevent the termination of\nemployment contracts for Pegawai Pemerintah dengan Perjanjian Kerja\n(PPPK). This advice was given following reports of numerous PPPK at risk\nof dismissal because several regions\u2019 personnel expenditure budgets are\ninsufficient to cover their salaries.<\/p>\n
The inability of regions to pay PPPK salaries is triggered by the\nrestriction on personnel expenditure to a maximum of 30 percent of the\nregional revenue and expenditure budget (APBD). This new regulation,\neffective from January 2026, is stipulated in Law Number 1 of 2022 on\nFinancial Relations between the Central Government and Regional\nGovernments.<\/p>\n
Tito suspects that some regions claiming inability to pay PPPK\nsalaries have not yet implemented efficiencies. Allocations for less\ncritical components, such as official travel, meeting consumables, and\nother activities, remain too high. \u201cThere are regions that have already\ncarried out efficiencies, and that is sufficient to pay PPPK,\u201d Tito said\nwhen met at the DPR Complex, Senayan, Jakarta, on Monday, 30 March\n2026.<\/p>\n
The former Chief of the Indonesian National Police also suggested\nthat regional heads be more creative in seeking alternative funding\nsources beyond the APBD. For example, developing regional-owned\nenterprises; promoting the growth of micro, small, and medium\nenterprises (UMKM); and optimising tax revenues, such as from\nrestaurants, to flow into the regional revenue service.<\/p>\n
Tito is confident that there are many ways to increase original\nregional revenue, thereby preventing mass layoffs of PPPK. Tito then\nemphasised that regions should not always rely on the APBD to run\ngovernment operations.<\/p>\n
\u201cIf it\u2019s just routine work, spending the APBD, anyone can do it. But\nhow can regional heads have creativity so that they do not burden the\npeople,\u201d he stated.<\/p>\n
If efficiencies and efforts to find funding sources beyond the APBD\nhave been pursued, but the region still cannot pay PPPK salaries, Tito\nsaid the central government will offer a final solution, namely\nadjusting the 30 percent APBD usage limit for personnel expenditure.<\/p>\n
According to clause 3 of Article 147 of Law Number 1 of 2022, Tito\nexplained, the 30 percent personnel expenditure restriction can be\nadjusted by the Minister of Finance after coordinating with the Minister\nof Home Affairs and the Minister for State Apparatus Utilisation and\nBureaucratic Reform.<\/p>\n
Therefore, Tito urged the public not to worry about PPPK dismissals\noccurring. The central government is open to adjusting regulations and\nfinding solutions. \u201cWe will first see which regions have truly given up.\nThey have already implemented efficiencies, already racked their brains\nto find new revenues, but still cannot cover PPPK salaries; there will\nbe an adjustment, namely changing the size of that 30 percent,\u201d he\nsaid.<\/p>\n
Previously, discussions of mass PPPK dismissals due to the personnel\nexpenditure restriction to a maximum of 30 percent of the APBD have\nemerged in several regions. In Nusa Tenggara Timur, for instance,\nGovernor Emanuel Melkiades Laka Lena plans to dismiss 9,000 PPPK in the\nNTT Provincial Government environment when the personnel expenditure\nrestriction regulation takes effect.<\/p>\n
Meanwhile, West Sulawesi Governor Suhardi Duka is also preparing to\ndismiss around 2,000 PPPK for the same reason.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/home-affairs-minister-urges-local-governments-to-boost-efficiency-to-prevent-pppk-layoffs-1774871512", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }