Minister of Home Affairs Outlines Solutions for PPPK Management in Regions During DPR Meeting

The Minister of Home Affairs, Muhammad Tito Karnavian, has outlined several solutions regarding the management of Government Employees with Work Agreements (PPPK) in regional areas. These steps were presented in response to personnel dynamics within local governments, particularly following the enactment of Law Number 1 of 202하도록 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).

“We are here to discuss issues regarding PPPK and honorary staff, as well as the relaxation of policies for drafting regulations on personnel expenditure limits in governments that exceed 30 per cent of the Regional Budget (APBD),” he stated in a written briefing on Monday (8/6/2026).

This was disclosed during a working meeting of Commission II of the Indonesian House of Representatives (DPR RI) alongside the Minister of State Apparatus Utilization and Bureaucratic Reform, the Minister of Home Affairs, and various regional heads at the Parliament Complex in Senayan, Jakarta.

Tito explained that a major concern for regions relates to the provisions for personnel expenditure as regulated in Article 146 of the HKPD Law. This regulation requires local governments to allocate personnel expenditure, excluding teacher allowances allocated through Regional Transfers (TKD), at a maximum of 30 per cent of the total Regional Budget (APBD). Furthermore, local governments are required to adjust their personnel expenditure proportions in accordance with this provision within a maximum of five years from the enactment of the HKPD Law, meaning the policy becomes fully enforceable in 2027. According to the Minister, this situation is creating dynamics in several regions with limited fiscal capacity.

To address these issues, the Minister of Home Affairs offered several strategic solutions. One of these is ensuring that regional heads act decisively by no longer recruiting new honorary staff. “I urge all local governments to be firm; there must be no new honorary personnel,” he said.

Regarding regional revenue, Tito emphasised the importance of optimising Regional Original Income (PAD) without burdening the public. This can be achieved through various measures, including encouraging ease of business licensing to boost regional economic activity. Additionally, local governments are encouraged to optimise digital tax and levy collection systems to increase regional revenue.

On the same occasion, Tito revealed that his office has held meetings with the Minister of State Apparatus Utilisation and Bureauatic Reform and the Minister of Finance to discuss the 30 per cent maximum limit on personnel expenditure as stipulated in the HKPD Law. The results of the meeting led to an agreement that the transition period for implementing these provisions will be extended.

Tito noted that this policy will be included in the revision of the State Budget (APBN) Law. “This will be included. We also request the support of the Commission Leadership and all members of Commission II so that the law specifies an extension of the five-year transition period—for example, to one or two years later—within this Law. Thus, the principle of lex posterior derogat legi priori applies, where the later rule overrides the previous one,” he concluded.

Also present at the meeting were the Chairman of Commission II of the DPR RI, M. Rifqinizamy Karsayuda, along with the leadership of Commission II, the Minister of State Apparatus Utilisation and Bureaucratic Reform, Rini Widyantini, regional heads from APPSI, APEKSI, and APKASI, and other relevant parties.