{
    "success": true,
    "data": {
        "id": 1792869,
        "msgid": "resolution-of-pppk-issues-deemed-merely-a-patchwork-solution-1780987935",
        "date": "2026-06-09 13:28:00",
        "title": "Resolution of PPPK Issues Deemed Merely a Patchwork Solution",
        "author": "Indriyani Astuti",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Social Policy",
        "summary": "The Indonesian government's decision to extend the transition period for the 30% regional budget cap on personnel spending is being criticised as a short-term fix. Experts warn that without evaluating the Law on Financial Relations between Central and Regional Governments, the policy could lead to future social unrest and fiscal instability in various provinces.",
        "content": "<p>The government has decided to extend the transition period for\nimplementing the maximum personnel expenditure limit of 30% of the\nRegional Revenue and Expenditure Budget (APBD), following reports that\nmany local governments are unable to pay Government Employees with Work\nAgreements (PPPK). However, this move is being viewed as merely a\nshort-term solution.<\/p>\n<p>Herman N. Suparman, Executive Director of the Committee for the\nMonitoring of Regional Autonomy Implementation (KPPOD), believes the\ngovernment should provide long-term policy certainty regarding the PPPK\nissue. \u201cThe solution offered, or even decided by the Minister of Home\nAffairs, is like a short-term fix, only to extinguish the fire for a\nmoment. Because later, it could trigger social unrest in the regions,\u201d\nHerman stated on Tuesday.<\/p>\n<p>According to him, while extending the transition period may reduce\nfiscal pressure on local governments, the policy does not address the\ncore issue regarding the personnel expenditure limit regulated under the\nLaw on Financial Relations between the Central Government and Regional\nGovernments (HKPD). Herman suggests the government should evaluate the\nHKPD Law, as extending the transition period within the 2027 State\nBudget discussions could potentially result in a temporary solution that\nleads to renewed uncertainty in the future.<\/p>\n<p>Furthermore, KPPOD argues that the 30% maximum limit is being applied\nwith an overly uniform approach, despite the fact that fiscal capacity\nand needs vary significantly across regions. \u201cIf we look at it, 30% for\nJakarta is certainly different from 30% for NTT, NTB, Papua, or other\nregions, because the fiscal capacity of each region is different,\u201d he\nnoted.<\/p>\n<p>Herman suggested that the central government should consider the\nspecific characteristics and fiscal capacities of each region. This\nwould allow targets for personnel expenditure efficiency, including\nPPPK, to be adjusted to the real conditions of local governments without\ncompromising public services. He also highlighted that regional fiscal\nconditions have become increasingly strained over the last year and a\nhalf due to cuts in Transfers to Regions (TKD).<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/resolution-of-pppk-issues-deemed-merely-a-patchwork-solution-1780987935",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}