Local Governments Struggle to Pay ASN Teachers, Purbaya Rearranges Employee Spending Limits
Jakarta, CNBC Indonesia - The government has assured that the transitional period for implementing the maximum 30% employee spending limit from the Regional Revenue and Expenditure Budget (APBD) will be extended through the State Budget (APBN) law mechanism, to be regulated by Finance Minister Purbaya Yudhi Sadewa.
This decision stems from the Ministerial Level Meeting (RTM) on Regional Personnel and Financial Management, chaired by Minister of State Apparatus Utilization and Bureaucratic Reform (PANRB) Rini Widyantini, along with Interior Minister Muhammad Tito Karnavian and Finance Minister Purbaya Yudhi Sadewa.
For context, Article 146 of Law No. 1 of 2022 on Financial Relations between the Central Government and Regional Governments (HKPD) stipulates that regional employee spending must not exceed 30% of the APBD, with a five-year transition period starting from the law’s enactment on 5 January 2022.
However, implementing this regulation has raised concerns in many regions due to the high proportion of employee spending, including the potential suspension of PPPK appointments.
According to the official statement, PANRB Minister Rini Widyantini emphasised that the government guarantees there will be no mass layoffs (PHK) of PPPK personnel as a result of this regulation.
“Today, we, along with the Interior Minister and Finance Minister, are following up on the HKPD Law, particularly regarding the 30% maximum employee spending provision from the APBD. The government assures there will be no mass PHK of PPPK,” Rini stated, as quoted on Friday (8/5/2026).
Meanwhile, Interior Minister Tito Karnavian explained that the government has found a solution to alleviate concerns among regional heads and PPPK personnel.
He noted that regulation through the APBN Law carries legal force equivalent to the HKPD Law.
“We apply the principle of lex posterior derogat legi priori, meaning a newer law supersedes the previous one. Thus, regional heads need not worry anymore,” he said.
Tito added that the main message to regional heads from this meeting is one of reassurance.
“This means regional heads no longer need to worry. If a region has employee spending exceeding 30% of the APBD, it will refer to the APBN Law, which will be coordinated by the Finance Minister,” Tito stated.
On the same occasion, Finance Minister Purbaya Yudhi Sadewa expressed full support for the jointly formulated solution framework.
“The Ministry of Finance will ensure that the APBN Law instrument provides legal certainty for regions and job security for PPPK, while maintaining national fiscal balance,” he said.
For information, dozens of regional governments have applied for inability to pay salaries for part-time Government Employees with Work Agreements (PPPK) teachers. They have sought relief or relaxation from the Ministry of Basic and Secondary Education.
Basic and Secondary Education Minister Abdul Mu’ti stated that some regions are beginning to struggle with covering those salaries.
“Well, some regional governments are able to provide salaries, while others are starting to face difficulties,” Abdul Mu’ti said at the Government Communication Agency office on Wednesday (6/5/2026).
To address this issue, the Ministry of Basic and Secondary Education is covering salaries for non-ASN teachers in some regions. However, according to Mu’ti, more regions are now applying for inability assistance.
“Now, many are indeed applying, and the number of regions seeking policy from the Ministry regarding part-time PPPK teachers continues to grow,” he explained.
Salaries for part-time PPPK teachers are indeed the responsibility of regional governments through the APBD. However, through Circular Letter No. 6/2026 from the Ministry of Basic and Secondary Education, a financing relaxation policy has been provided for part-time PPPK teachers and education personnel via School Operational Assistance (BOSP), applicable only for this year, 2026.
On that occasion, Director General of Early Childhood Education, Basic Education, and Non-Formal and Informal Education at the Ministry of Basic and Secondary Education, Gogot Suharwoto, explained that 78 cities/counties and provinces have already received relaxation or are facing difficulties in fulfilling part-time PPPK honorariums in educational units.
“This is only for public schools; based on the data received and approved, there are 78 regencies, cities, and provinces,” Gogot said.