Fiscal Difficulties Force Six Central Java Regions to Struggle with ASN and PPPK Salaries

Several regions in Central Java are reportedly experiencing difficulties in paying the salaries of State Civil Apparatus (ASN) and Government Employees with Work Agreements (PPPK). This situation has been triggered by fiscal limitations following cuts to the Regional Transfer Fund (TKD) from the central government.

The situation has forced a number of local governments to recalculate their Regional Revenue and Expenditure Budgets (APBD). This step was taken to align budget policies with urgent needs so that government operations can continue, including by reducing several employee spending activities.

Based on compiled data, at least six regions in Central Java have complained about the payroll burden, namely Wonogiri, Klaten, Sukoharjo, Sragen, Karanganyar, and Rembang Regencies.

The Head of the Central Java Regional Financial and Asset Management Agency (BPKAD), Dwianto Priyonugroho, explained that the TKD cuts, coupled with an increase in the number of civil servants, particularly following the appointment of PPPK workers, have placed significant pressure on regional finances. According to him, the high allocation for personnel expenditure directly impacts the regions’ ability to finance other sectors.

“The high level of personnel spending also reduces the regions’ ability to finance infrastructure, public services, and priority programmes, because the majority of regency and city governments in Central Java still allocate personnel spending above the government’s stipulated limit of 30%,” said Dwianto.

Echoing this sentiment, Central Java Vice Governor Taj Yasin Maimoen acknowledged the fiscal constraints faced by regencies and cities in covering PPPK salaries. He stated that the issue has been escalated to the national level.

“We have reported this problem to the central government; for regencies and cities that are unable to cope, we have reported it to the central government because it is related to regional transfers,” Taj Yasin asserted.

As a solution, the Central Java Provincial Government is trying to help these regions increase their Local Own-Source Revenue (PAD). Taj Yasin added that at the provincial level, the financial condition is still relatively stable and capable of covering the salaries of around 66,000 ASN under its authority. The provincial government hopes that the central government will review the TKD cut policy in the coming year, as the TKD remains a vital instrument for supporting the fiscal capacity of regency and city governments in Central Java.