Indonesian Political, Business & Finance News

Many Civil Servants Suffer After Retirement, How Can This Be?

| Source: CNBC Translated from Indonesian | Economy
Many Civil Servants Suffer After Retirement, How Can This Be?
Image: CNBC

The solution to the salary scheme issues for Civil Servants (ASN), including Permanent Civil Servants (PNS), remains unresolved. Consequently, an increasing number of civil servants are facing financial hardship upon entering retirement.

“Currently, the basic salary is supplemented by many allowances, so when retirement occurs, income drops drastically. This causes many of our civil servants to suffer and leads to a reluctance to retire; instead, they seek functional positions,” said the Head of the National Civil Service Agency (BKN), Zudan Arif Fakrulloh, during a working meeting with the DPD Committee I in Jakarta, as reported on Wednesday (8/7/2026).

Zudan also believes that if civil servants become more prosperous through a salary scheme that ensures welfare until retirement age, public services will improve as employees can work with greater focus.

“Because if civil servants are prosperous, they will certainly work more focused, achieve higher performance, and will not compete excessively for structural positions,” Zudan emphasised.

One proposed solution is the implementation of a single salary scheme. As is widely known, the discourse regarding the application of a single salary for civil servants remains pending.

He stated that this remuneration scheme is vital to ensuring the welfare of all civil servants until retirement, including both PPPK (Government Employees with Work Agreements) and PNS.

“This is related to the standardisation of civil servant welfare. We at the BKN are constantly fighting for this, aiming towards a single salary system,” said Zudan.

Zudan asserted that a single salary would be a system that supports civil servant welfare because their income would no longer rely on various allowances, but would instead be integrated entirely into the basic salary. By doing so, he believes that when retirement arrives, civil servants will no longer experience the income drop that has caused many retirees to suffer in the past.

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