Home Affairs Ministry Assures PPPK Job Security, Regional Employee Spending Budget Remains Under Control

The Directorate General of Regional Financial Development at the Ministry of Home Affairs has assured that regional government employee spending budgets remain controlled within ideal limits, while guaranteeing the sustainability of Government Employees with Work Agreements (PPPK). Director General Agus Fatoni emphasised that all employee spending needs, including for PPPK, have been adequately allocated. “The budget has been well-prepared. We ensure that PPPK remains secure and the rights of civil servants are fulfilled, while promoting efficiency so that the proportion of employee spending complies with regulations,” Agus stated in his remarks on Tuesday (7/4). This statement was delivered by Agus alongside the Governor of East Nusa Tenggara, Emanuel Melkiades Laka Lena, during a coordination meeting at the NTT Governor’s Office, attended by regents and mayors across NTT. Based on NTT’s 2026 Regional Budget data, total regional spending is recorded at Rp5.31 trillion, with employee spending reaching Rp2.72 trillion. This figure already includes the needs of 12,380 full-time PPPK personnel with an allocation of Rp813.91 billion. After excluding teacher spending and allowances, the proportion of employee spending is around 40.29%. Agus explained that the government has also issued decision letters (SK) to 4,536 part-time PPPK as part of non-civil servant workforce restructuring. In addition to ensuring budget sufficiency, the Ministry of Home Affairs is promoting regional fiscal strengthening through employee spending control and increased local revenue. “For the 2027 fiscal year, the government is preparing fiscal data updates as the basis for central transfer calculations, while encouraging cooperation between regional governments and business entities to expand development financing opportunities,” Agus said. He added that local revenue strengthening efforts are being carried out through tax and levy optimization, improved performance of regional-owned enterprises (BUMD), utilization of regional assets, and strengthening the role of Regional Public Service Agencies (BLUD). Regional governments are also urged to leverage alternative financing sources such as ministries/institutions, corporate social responsibility (CSR), and the National Zakat Agency (Baznas). Furthermore, Agus stressed that controlling employee spending is key to maintaining fiscal sustainability without sacrificing public services. “In the short term, regional governments are directed to reallocate spending, including reducing official travel, operational spending efficiency, and tightening non-urgent support spending,” he stated. During this period, regional governments have been actively adding employees, both civil servants and PPPK. The increasing burden of employee spending in the regional budget is further pressuring regional finances in 2025 and 2026. The Civil Servant Law regarding government employees with work agreements (PPPK) has been challenged at the Constitutional Court (MK) for allegedly creating job status uncertainty. Government agencies have also submitted absolute responsibility statements (SPTJM) when appointing PPPK. Regional governments are urged to implement efficiency measures and breakthroughs in local revenue to prevent PPPK layoffs.