Cirebon Regent Proposes Central Government Payment of PPPK Salaries as Employee Spending Exceeds 30%

Facing fiscal pressure, the Cirebon Regency Government has proposed that the central government take over the payment of salaries and allowances for Government Employees with Work Agreements (PPPK). Cirebon Regent Imron Rosyadi revealed that the proposal was submitted during a coordination meeting held with Commission II of the Indonesian House of Representatives, the Ministry of Home Affairs, the Ministry of State Apparatus Empowerment and Bureaucratic Reform, as well as several regional heads from various parts of Indonesia. “The proposal arose in line with the increasing burden of employee spending,” said Imron on Tuesday (8/6). For Cirebon Regency, the employee spending burden has now reached 38% of the Regional Revenue and Expenditure Budget (APBD). This figure exceeds the ideal limit that has been the government’s reference, which is a maximum of 30%.

Imron explained that employee spending is one of the largest expenditure components in the APBD. “The situation has become more difficult after the number of PPPK increased in recent years,” said Imron. The large portion of employee spending will automatically reduce funds for development programmes and other public services. The greater the budget absorbed for payroll, the more limited the region’s ability to fund infrastructure development, education, health, and community economic empowerment programmes.

On the same occasion, Imron also disclosed that the central government has asked regional governments not to appoint new honorary workers. Meanwhile, non-ASN (state apparatus) workers who have been registered and have not been appointed as full-time PPPK will be retained through a part-time PPPK scheme in accordance with provisions being prepared by the government.

Furthermore, Imron hopes the central government can consider regional financial capacity for employee spending. The proposal to return the responsibility for paying PPPK salaries and allowances to the central government is not solely to reduce regional obligations, but so that district and city governments have more adequate fiscal space to carry out development functions. “Regional governments hope there will be a new formulation that can create a balance between employee appointment policies and regional budget capacity,” said Imron.