Good News for Part-Time PPPK Workers as Government Announces Transition Plan
The Indonesian government has delivered positive news for part-time Government Employees with Work Agreements (PPPK). Employees currently holding part-time status will be gradually transitioned into full-time PPPK roles. This was announced by the Minister of State Apparatus Utilization and Bureaucratic Reform (PAN-RB), Rini Widyantini, during a meeting with Commission II of the House of Representatives (DPR RI) on Monday.
Minister Rini stated that part-time PPPK workers can be proposed for transition based on work evaluations and the availability of budgets within their respective agencies. This transition process is regulated under the Minister of PAN-RB Decree (Kepmen) Number 16 of 2025. However, a significant obstacle remains due to Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD), which mandates that personnel expenditure must be limited to 30% of the Regional Budget (APBD).
Due to this constraint, discussions were held in early May 2026 with the Minister of Finance, Purbaya Yudhi Sadewa, and the Minister of Home Affairs, Tito Karnavian. It was agreed that a transition period for the HKPD Law will be implemented, which is expected to be realised by January 2027. Special policies will be introduced for regional governments whose personnel spending exceeds the 30% threshold or those facing fiscal limitations. These special provisions are intended to be included in the 2027 State Budget (APBN) Draft Bill.
Addressing the origins of the issue, Rini explained that BKN data since 2022 showed 1,789,051 non-ASN workers as the basis for the 2024 PPPK requirements. However, government agencies only proposed 1,071,111 formations. Following an initial selection process, only 689,826 participants were recorded due to various reasons, such as failure to register for open formations or delays by relevant agencies. Despite efforts to identify additional formations through the Minister of Home Affairs, subsequent selection stages yielded only 182,562 participants.
Consequently, workers who participated in the selection process but could not proceed due to delayed formations by certain agencies will be appointed as part-time PPPK. Under Minister of PAN-RB Regulation Number 16 of 2025, approximately 1,251,252 part-time PPPK workers have been assigned PPPK identification numbers (NIP) and one-year employment contracts. Minister Rini confirmed that non-ASN workers who participated in the selection but did not receive a formation due to lack of agency proposals will be appointed as part-time PPPK, ensuring they receive NIP and a minimum one-year contract.