Controversy Over 30% Employee Spending Limit: MenPAN-RB Assures No Mass Layoffs of PPPK
Minister for State Apparatus Utilisation and Bureaucratic Reform (PAN-RB) Rini Widyantini explained that the government is striving to ensure the management of civil service human resources continues smoothly without disrupting regional fiscal sustainability or the quality of public services.
“Today, we, together with the Minister of Home Affairs and the Minister of Finance, are following up on the HKPD Law, particularly regarding the provision of a maximum 30% employee spending from the regional budget. The government assures there will be no mass layoffs of PPPK,” Rini stated in a written statement on Friday (8/5/2026).
This was conveyed during the Ministerial-Level Meeting (RTM) on Regional Civil Service and Financial Management. The meeting was led by PAN-RB Minister Rini Widyantini, along with Minister of Home Affairs Muhammad Tito Karnavian and Minister of Finance Purbaya Yudhi Sadewa, at the Ministry of PANRB office in Jakarta yesterday.
The meeting is a follow-up to the recommendations of Commission II of the DPR RI from the Working Meeting on 31 March, regarding the implementation of Article 146 of the HKPD Law. This regulation requires regions to allocate a maximum of 30% of the regional budget for employee spending, with a five-year transition period since it was enacted on 5 January 2022.
On that occasion, Tito stated that the meeting produced concrete solutions to ease concerns in the regions and among PPPK personnel.
“I know that many regions are currently worried about the possibility of violating Article 146 of the HKPD Law, and some regions are even planning to terminate PPPK contracts. With this meeting, we have found the solution. The transition period for implementing the 30% provision will be extended and regulated through the APBN Law,” he emphasised.
He explained that 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. Thus, regional heads no longer need to worry,” he said.
Tito added that the main message to regional heads is reassurance. “That means regional heads no longer need to worry. If there are regions where employee spending exceeds 30% of the regional budget, it will be referred to the APBN Law, which will be coordinated by the Minister of Finance,” he revealed.
Furthermore, Tito explained that the central government will also provide support for development programmes in regions with high employee spending ratios to ensure public services continue optimally.
“For regions with high employee spending, we, together with the Minister of Finance, will design programmes for the benefit of the community in those regions, implemented by central government ministries and agencies. That means, even if employee spending is high, development activities and programmes for the community will continue, backed by the central government. This will reassure the public,” he elaborated.
On the other hand, Purbaya fully supports the framework of the solution that has been formulated together. “I fully support what was stated by the Minister of Home Affairs and the Minister of PANRB. The Ministry of Finance will ensure that the APBN Law instrument provides legal certainty for the regions and job security for PPPK, while maintaining national fiscal balance,” he clarified.
As a follow-up, the three ministries will issue a joint circular to regional governments in the near future as technical guidance. In addition, a policy framework for future civil service recruitment will be prepared, more calibrated with regional fiscal capacity and organisational needs.
For information, the meeting was also attended by Deputy Minister of PANRB Purwadi Arianto, Secretary General of the Ministry of Finance Robert Leonard, Secretary General of the Ministry of Home Affairs Tomsi Tohir, and Secretary of the Ministry of PANRB Reni Suzana.