Home Minister Opens Door to Revising Regional Head Salaries, Linking to Performance and PAD
Minister of Home Affairs (Mendagri) Tito Karnavian has opened the possibility of revising Government Regulation (PP) No. 109 of 2000 on the Financial Entitlements of Regional Heads and Deputy Regional Heads. Tito said the regulation governing regional heads’ salaries is now 26 years old.
“So within PP No. 109 of 2000 on the financial entitlements of regional heads and deputy regional heads, there is a component called BPO, or operational support funds. That is regulated there. Now, this is linked to PAD (regional own-source revenue),” Tito said after a meeting with House Commission II at the DPR building in Senayan, Jakarta, on Thursday (30/7/2026).
“So if it is later to be reformed, reformulated and adjusted to current conditions — because we know costs have risen; 2000 to 2024 is a vast difference,” he continued.
The former National Police Chief said adjustments to regional heads’ financial entitlements could not simply be handed out. According to him, any additional amount must be linked to regional heads’ performance achievements.
“The exchange rate will also differ, so if it is adjusted, it must be linked to, firstly, performance. Performance must be good — there are seven main indicators,” he explained.
In addition, Tito said the adjustment needs to be linked to PAD. In his view, this would give regional heads an incentive to increase regional revenue through innovation without burdening the public.
“So if there is some form of operational spending linked to the size of PAD, it will not only benefit regional heads but also benefit the community,” he said.
“Because there will be motivation for regional heads not to be indifferent — they will strive to find creative, innovative ideas without weighing on the people, to raise regional own-source revenue, from which they may lawfully receive, let’s say, an addition, because it is indeed regulated,” he continued.
According to him, higher PAD would also translate into a larger regional budget (APBD). That could then be used for development and public services.
Furthermore, Tito said PP No. 109 of 2000 is indeed due for review. He said a team would later be formed at government level.
“Yes, because we see that 2000 to 2026 is already a vast difference. It is perhaps time for a revision, but of course we will form a team again at government level, and we will discuss it with the Finance Minister and Bappenas,” he explained.
The Association of All Indonesian Regency Governments (APKASI) had earlier proposed adjusting the salaries or financial entitlements of regional heads and deputy regional heads. APKASI judged that the regulation governing regional heads’ financial entitlements no longer matched the ever-growing workload and responsibilities.
This was conveyed by APKASI Chairman Bursah Zarnubi during a House Commission II meeting with the Ministry of Home Affairs, officials of the Association of All Indonesian Regency Governments (APKASI) and the Association of All Indonesian City Governments (APEKSI) at the DPR building in Senayan, Jakarta, on Thursday (30/7/2026). APKASI proposed that the government revise several rules governing regional heads’ financial entitlements.
“We need to convey that the regulations concerning regional heads’ financial entitlements are no longer in line with developments, and with the evolving authority and responsibilities of regional heads and deputy regional heads, whose burdens and complexity are increasingly heavy,” Bursah said.