Indonesian Political, Business & Finance News

Limit Employee Spending, Thousands of Part-Time PPPK in Tasikmalaya City Face Layoffs

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
Limit Employee Spending, Thousands of Part-Time PPPK in Tasikmalaya City Face Layoffs
Image: MEDIA_INDONESIA

The central government plans to limit employee spending to a maximum of 30% of the regional revenue and expenditure budget (APBD) in 2027, which will impact thousands of part-time Government Employees with Work Agreements (PPPK) who face the risk of layoffs or non-renewal of contracts. The Secretary General of Tasikmalaya City, Asep Goparulloh, stated that this restriction will affect 1,800 newly appointed part-time employees who are at risk of not having their contracts extended. “The central government’s plan to limit employee spending to a maximum of 30% will naturally require local governments to make adjustments, particularly in budget management. However, this policy has the potential to impact 1,800 part-time PPPK workers who are at risk of termination of employment relations (PHK),” he said on Friday (27/3). According to Asep, regional fiscal conditions must be a primary consideration, especially in determining civil service policies. He explained that the projected APBD for 2027 is not expected to differ significantly from previous years. Nevertheless, local governments require meticulous calculations to ensure public service needs are met without exceeding budgetary capabilities. “Local governments will not add new employees beyond priority needs and will now strive to optimise existing resources to maintain a balance between employee spending and services to the community. We are faced with a very challenging situation due to this policy and will continue to ensure the quality of public services is maintained,” he said. Meanwhile, the Chairman of Commission I of the Tasikmalaya City DPRD, Dodo Rosada, stated that the central government’s plan to limit employee spending to a maximum of 30% of the total regional revenue and expenditure budget (APBD) starting in 2027 will impact 1,800 part-time PPPK workers who are at risk of termination of employment relations (PHK). “The plan for mass layoffs of 1,800 part-time PPPK workers is not the right step and has the potential to harm the wider community. The part-time PPPK policy, which emerged due to budget limitations, is an unpopular decision; they were appointed through a long process and dedication, so it is not fair for them to be the first to be sacrificed,” he said. According to him, the unpopular policy mentioned by the Secretary General regarding those appointed is not without reason, as many part-time PPPK have served for decades. Therefore, the DPRD urges the local government to seek alternative solutions, one of which is to implement budget efficiencies in programmes deemed to have less direct impact on the community. “We ask the local government to seek alternative solutions through budget efficiencies, such as socialisation activities and seminars that often absorb large budgets, as their benefits are considered not yet optimal, to reduce the burden of regional spending, including meals and drinks expenditure, so that such steps become a solution rather than terminating PPPK,” he concluded.

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