APBN Regulations Amended! PPPK and Part-Time Teachers Avoid Mass Layoffs

The government has confirmed that there will be no mass layoffs (PHK) for PPPK civil servants and will extend the implementation of the maximum 30% employee spending provision from the Regional Revenue and Expenditure Budget (APBD). For information, Article 146 of Law No. 1 of 2022 on Financial Relations between the Central Government and Regional Governments (HKPD) regulates the maximum regional employee spending at 30% of the APBD with a five-year transition period since the regulation was enacted on 5 January 2022. However, the implementation of this rule has raised concerns in many regions due to the high proportion of employee spending, including the potential termination of PPPK contracts. Citing its official statement, Minister of PANRB Rini Widyantini emphasised that the government ensures there will be no mass layoffs of PPPK due to this regulation. “Today, we, together with the Minister of Home Affairs and the Minister of Finance, are following up on the HKPD Law, particularly regarding the 30% maximum employee spending provision from the APBD. The government ensures there will be no mass PHK for PPPK,” said Rini, quoted on Friday (8/5/2026). Meanwhile, Minister of Home Affairs Tito Karnavian explained that the government has found a solution to alleviate the concerns of regional heads and PPPK workers. He explained that the regulation through the APBN Law has legal force equivalent to the HKPD Law. “We apply the principle of lex posterior derogat legi priori, meaning the newer law overrides the previous one. This means regional heads no longer need to worry,” he said. Tito added that the main message to be conveyed to regional heads is peace of mind. “This means regional heads no longer need to worry. If there are regions where employee spending exceeds 30% of the APBD, it will refer to the APBN Law, which will be coordinated by the Minister of Finance,” said Tito. On the same occasion, Minister of Finance Purbaya Yudhi Sadewa expressed full support for the solution framework that has been formulated together. “The Ministry of Finance will ensure that the APBN Law instrument can provide legal certainty for regions and job certainty for PPPK, while maintaining national fiscal balance,” he said. Previously reported, the salaries of part-time PPPK teachers are indeed the responsibility of regional governments through the APBD. However, through Circular Letter of the Minister of Education, Culture, Research, and Technology No. 6/2026, a relaxation policy for funding was granted for teachers and education personnel appointed as part-time PPPK through the Operational Assistance for Education Units (BOSP) only for this year 2026. On that occasion, Director General of Early Childhood Education, Basic Education, and Non-Formal and Informal Education of the Ministry of Education, Culture, Research, and Technology Gogot Suharwoto explained that there are already 78 cities/regencies and provinces that have been granted relaxation or are experiencing difficulties in meeting the honourarium for part-time PPPK in education units. “This is only in public schools, the data received that has been approved includes 78 regencies, cities, and provinces,” said Gogot. The fate of non-ASN teachers is also becoming increasingly uncertain. According to the ASN Law, the fate of part-time PPPK teachers is only guaranteed by the state until 31 December 2026. To date, there is still no further clarity on this matter. “You can ask Mrs. Menpanrb,” said Abdul Mu’ti when asked by reporters. However, he gave a signal that there will be changes to the teacher appointment scheme next year. “For now, we make decisions until 31 December, after that we don’t know yet, wait and see, because there may be changes in the teacher appointment scheme in 2027. The scheme may change,” he added.