Government Assures No Mass Layoffs of PPPK

JAKARTA, KOMPAS.com - The government has assured that there will be no mass termination of employment (PHK) for Pegawai Pemerintah dengan Perjanjian Kerja (PPPK). This assurance relates to the provision of a maximum 30 percent limit on regional employee expenditure from the Regional Revenue and Expenditure Budget (APBD). The decision was conveyed during a ministerial-level meeting chaired by the Minister of State Apparatus Utilization and Bureaucratic Reform (PANRB), Rini Widyantini, along with the Minister of Home Affairs, Muhammad Tito Karnavian, and the Minister of Finance, Purbaya Yudhi Sadewa, at the Ministry of PANRB office in Jakarta on Thursday (7/5/2026). The meeting discussed the implementation of Article 146 of Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (HKPD). The regulation sets a maximum 30 percent limit on employee expenditure from the APBD with a five-year transition period starting from 2022. “The government assures that there will be no mass PHK against PPPK,” said Rini in an official statement, quoted on Friday (8/5/2026). The Minister of Finance, Purbaya Yudhi Sadewa, expressed full support for the scheme prepared by the government. According to him, the Ministry of Finance will prepare instruments in the State Revenue and Expenditure Budget (APBN) Law to provide legal certainty for regional governments and PPPK. “The Ministry of Finance will ensure that the APBN Law instruments can provide legal certainty for the regions and employment certainty for PPPK, while maintaining national fiscal balance,” said Purbaya. This support will be implemented by ministries and central government institutions to ensure that public services and regional development continue to run smoothly.