House Commission II Welcomes Government Policy to Prevent PPPK Layoffs
Chairman of Commission II of the Indonesian House of Representatives (DPR RI), Rifqinizamy Karsayuda, has welcomed the government’s policy to prevent Government Employees with Work Agreements (PPPK) from being laid off due to financing difficulties.
According to him, the government’s move to provide additional General Allocation Funds (DAU) for struggling regions and to disburse Revenue Sharing Funds (DBH) from the central government is in line with Commission II’s recommendations.
“The policy issued by the government today is consistent with several Commission II meetings that recommended relaxing the efficiency policy on central-to-regional financial transfers,” Rifqi told reporters in Jakarta on Tuesday.
The legislator overseeing regional autonomy said the government indeed needed to issue an affirmative policy to safeguard the percentage of personnel expenditure in the regions, particularly for PPPK.
According to him, there are still regions whose personnel expenditure exceeds 40 percent of their total Regional Revenue and Expenditure Budget (APBD).
“Some are even above 50 and 60 percent. Therefore, we certainly welcome what the government has done by providing additional DAU and paying in instalments the underpaid DBH since 2024,” he said.
He expressed hope that the policy could be implemented consistently by the government so that the burden on regional budgets for paying personnel expenditure could be resolved.
“If this policy is consistently implemented by the government, it could also address the narrow fiscal space for development spending in the regions,” said Rifqi.
In addition, Commission II also agrees with the option opened by the Ministry of Home Affairs regarding certain PPPK being made central government State Civil Apparatus (ASN).
According to Rifqi, PPPK teachers, education personnel, and health workers could be taken over by the central government. Thus, basic health and education services would become the authority of the central government, including the payroll burden.
“Therefore, the issue of unequal numbers of teachers and health workers across regions could be quickly addressed through national rotation by the central government,” he said.
Previously, Minister of Home Affairs Tito Karnavian stressed that in principle, no PPPK should be laid off. Therefore, the government has prepared three schemes.
First, Tito explained, regional governments must implement efficiency measures. Second, the central government will pay DBH to regions that have not yet received it. Finally, if efficiency measures have been taken and DBH is very minimal, the central government will add DAU.
He continued that based on discussions with Finance Minister Purbaya Yudhi Sadewa and President Prabowo Subianto on 5 August 2026, it was decided that total central government support to regional governments would amount to Rp18.9 trillion.
“Rp10 trillion of that is underpaid DBH to be paid to the regions. Then, more than Rp8 trillion is an addition, termed a DAU top-up,” Tito told reporters after a meeting at the parliamentary complex in Jakarta on Monday (10/8).
According to Tito, the disbursement of DBH began last week and is targeted to be completed this week.
On the same occasion, Tito also revealed the option of appointing PPPK teachers as central government ASN as one scenario to address financing problems in the regions.
The Minister of Home Affairs is still studying this option further. According to him, such a scheme is possible under Law Number 23 of 2014 on Regional Government.
“They can be pulled in and become central government ASN. They could later be transferred to places lacking teachers, not piled up in one place. This is possible. This is currently being exercised,” he said.