Home Affairs Ministry considers using DAU to pay regional PPPK salaries
Makassar (ANTARA) — The Ministry of Home Affairs (Kemendagri) is still working on a proposal to use the General Allocation Fund (DAU) to help regional governments facing fiscal difficulties pay the salaries of Government Employees with Work Agreements (PPPK).
“One of the suggestions is that PPPK salaries could be helped through the DAU. But of course this is not certain yet, and the formula is still being worked out whilst awaiting policy from the Ministry of Finance,” said Deputy Home Affairs Minister Bima Arya Sugiarto in Makassar, South Sulawesi, on Tuesday.
According to him, his office has instructed its staff to comb through regencies, cities and provinces that lack the fiscal space to cover PPPK salaries in their respective regions.
In addition, Home Affairs Minister Tito Karnavian continues to coordinate on which regions are unable to pay PPPK salaries, including coordinating with the Finance Ministry to verify data and the current conditions of regional governments.
Regarding moves by provincial governments to propose a direct increase in the DAU to pay PPPK salaries, which have begun to run into obstacles, Bima said such proposals were only natural for regions to submit given their importance.
Nevertheless, the central government will still review the proposal, first examining national fiscal capacity before taking the appropriate decision.
“It is fine (to propose additional DAU), but we shall see the extent of our state budget’s fiscal capacity to allocate that. What matters now is first confirming that the salaries indeed cannot be paid,” he said in response.
The former Mayor of Bogor emphasised once more that the budget efficiency policy must continue to be implemented sustainably until 2027. Therefore, regional governments must be rational in managing their regional expenditure budgets.
“This principle of efficiency continues. Allocations that are unreasonable must be removed — that is the principle. But the extent of the Regional Transfer (TKD) portion is still being formulated, in coordination with the Ministry of Finance,” he said firmly.
He argued that PPPK salaries should rightly be allocated from the state budget (APBN), given the cuts to the Regional Transfer made by the central government. On the other hand, the salary component allocation for PPPK is also considered burdensome to regional budget (APBD) structures as the number of PPPK employees has grown.
Previously, Muhammad Rifqinizamy Karsayuda, Chair of Commission II of the House of Representatives (DPR RI), said that based on evaluations, dozens of regencies and cities in Indonesia lack sufficient fiscal space to finance PPPK salaries, despite various budget efficiency measures having been taken.
“We have data showing there are 79 regencies and cities in Indonesia that have undergone thorough assessment. Efficiency has been carried out, their APBD has been calculated, yet there is no way forward other than being financed or assisted by the APBN. One source would be the DAU, the regional transfer budget,” he said in Makassar.