DPR Proposes APBN Cover Salaries for PPPK in Low-Fiscal Regions
The Chairman of Commission II of the House of Representatives (DPR RI), M. Rifqinizamy Karsayuda, has proposed that the payment of salaries for Government Employees with Work Agreements (PPPK) and part-time PPPK in regions with low fiscal capacity be financed by the state budget (APBN). The proposal comes amid controversy over the cutting of the Income Improvement Allowance (TPP) for civil servants (ASN), PPPK, and part-time PPPK in Tidore Islands City, North Maluku Province. Rifqi urged the government to immediately formulate a scheme for financing PPPK salaries through the APBN, especially for regions with fiscal limitations.
"We in Commission II of the DPR RI propose that the payment of salaries for PPPK and part-time PPPK in regions with fiscal limitations can be taken over through the APBN. If it cannot be done entirely, at least it should be carried out in stages with a co-financing scheme between the APBN and the Regional Budget (APBD)," Rifqi said in a written statement on Friday, 10 July 2026. The member of the NasDem Party faction stated that the incident in Tidore Islands City cannot be seen merely as a regional issue. He assessed that the condition is a result of the weak fiscal capacity of several regional governments in fulfilling their obligations to pay the salaries and allowances of their apparatus.
Thousands of PPPK members in Tidore demonstrated after the Tidore Islands City Government cut the TPP for ASN, PPPK, and part-time PPPK by 30 per cent. This policy was implemented to cover the regional budget deficit, which was reported to have reached more than IDR 50 billion. Consequently, the policy triggered rejection from thousands of employees within the Tidore Islands City Government. Rifqinizamy explained that based on applicable regulations, the payment of PPPK salaries is still the responsibility of regional governments through the APBD. Problems arise when regions experience limited fiscal space, preventing the optimal fulfilment of salary and allowance payment obligations.
Rifqi said the co-financing scheme between the APBN and APBD could be prioritised for PPPK members who carry out basic services for the community, such as health workers, teachers, and education personnel. This would ensure they continue to receive salary certainty without excessively burdening the fiscal capacity of regional governments. He stressed that the policy is not intended to be applied nationally, but only for regions that are truly experiencing fiscal pressure. "Regions with strong fiscal capacity certainly do not need APBN intervention. However, based on records from the Ministry of Home Affairs, there are around 39 districts and cities that require central government support in financing PPPK," he said.