Minister of Home Affairs opposes dismissal of PPPK and honorary workers

The Minister of Home Affairs, Muhammad Tito Karnatavian, emphasised that his ministry does not want to consider the option of dismissing Government Employees with Work Agreements (PPPK) and honorary staff when addressing personnel dynamics within local government environments. This was stated during a Hearing (RDP) with Commission II of the Indonesian House of Representatives (DPR RI) regarding the issues surrounding PPPK and honorary employees in Jakarta on Monday.

“We do not hope for the option of employee dismissal,” said Tito in the Commission II Meeting Room. He further asserted that workers who have already been recruited should not be dismissed, as the government wishes to avoid causing unrest among employees.

During the session, the Minister also outlined several strategies to ensure that personnel expenditure remains within the maximum limit of 30 per cent, as mandated by the Law on Central and Regional Financial Relations (UU HKPD) starting from 2027. Regarding expenditure, he urged regional governments (Pemda) to refrain from both new recruitments and the dismissal of existing staff. “(Regional heads) must be firm that there are no new honorary recruitments,” the Minister stated.

On the revenue side, the Minister encouraged regional governments to be creative in increasing Local Original Revenue (PAD). He cited the success of Pekanbaru City, which managed to optimise PAD from Rp800 billion to over Rp1 trillion through streamlined licensing processes. He also provided the example of Banyuwangi Regency, which successfully linked restaurant and hotel taxes directly to the regional government, thereby boosting PAD.

Furthermore, the Minister encouraged the optimisation of Regional-Owned Enterprises (BUMD) to serve as instruments for increasing PAD. In addition to these efforts, he confirmed that he has held meetings with the Minister of State Apparatus Empowerment and Bureaucratic Reform, Rini Widyantini, and the Minister of Finance, Purbaya Yudhi Sadewa. The results of these meetings in early May have led to a proposal to extend the transition period for the implementation of the UU HKPD by one year. “Not through a revision of the UU HKPD, but by including it in the 2027 State Budget (APBN) Law, extended by one year. In accordance with the legal principle of Lex Posterior Derogat Legi Priori, the later rule overrides the previous one,” the Minister concluded.