9,000 NTT Provincial Government Contract Workers Face Dismissal Due to Central Government Regulations
As many as 9,000 Government Employees with Employment Agreements (PPPK) of the East Nusa Tenggara (NTT) Provincial Government are at risk of being dismissed. This policy of laying off 9,000 PPPK is likely to take effect in 2027.
NTT Governor, Emanuel Melkiades Laka Lena, said this plan follows the implementation of Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD). This law regulates the limitation of employee expenditure to a maximum of 30% of the total Regional Budget (APBD).
“Although the implementation of this reduction has not been finalized, we still hope that the central government can change this decision,” said Laka Lena via telephone to detikBali, Thursday (February 26, 2026).
Laka Lena revealed that the HKPD Law will be valid five years after its enactment, specifically in 2027. When the HKPD Law is in effect, employee expenditure, according to the regulation, must be a maximum of 30% of the APBD.
The NTT Provincial Government, said Laka Lena, has started calculating the employee expenditure limit. The calculation is carried out by the NTT Regional Personnel Agency (BKD) and the NTT Regional Finance Agency (Bakeuda). The results of the calculation indicate that the NTT Provincial Government is expected to reduce employee expenditure by IDR 540 billion, equivalent to 9,000 PPPK.
“At that time, I called the Head of the BKD and the Regional Finance Agency. If this is implemented next year, then from the total number of PPPK employees we have, we are expected to save IDR 540 billion, which is equivalent to 9,000 PPPK that we cannot pay,” explained Laka Lena.
The plan to terminate or reduce PPPK, said Laka Lena, was also conveyed when leading a joint ceremony with NTT Provincial Government employees on Monday (February 23, 2026). According to Laka Lena, this information was conveyed early on to PPPK so that they can work independently.
“It is better for us to anticipate from the start so that all PPPK in NTT, without exception, we think about how to remain resilient by becoming entrepreneurs with People’s Business Loans (KUR) or other ways,” explained Laka Lena.
Laka Lena emphasized that the NTT Provincial Government is still waiting for a policy from the central government. The NTT Provincial Government is also looking for alternative jobs so that PPPK can switch professions if the law is not changed by the central government.
“This means that we have to lay them off or terminate them, so we have been anticipating from the start and we are looking for ways for these 9,000 people who will be laid off, we must train them to work in other sectors, especially the private sector,” said Laka Lena.
One of the mechanisms that will be carried out by the NTT Provincial Government is to direct PPPK to become entrepreneurs through assistance with People’s Business Loans (KUR) or other schemes. Laka Lena hopes that they can still support their families if they are no longer PPPK.
(hsa/hsa)