Indonesian Political, Business & Finance News

Minister of PANRB Asserts PPPK Cannot Be Dismissed Before Contract Expires

| Source: VIVA Translated from Indonesian | Regulation
Minister of PANRB Asserts PPPK Cannot Be Dismissed Before Contract Expires
Image: VIVA

Minister for State Apparatus Utilization and Bureaucratic Reform Rini Widyantini has stated that Government Employees with Employment Agreements (PPPK) cannot be dismissed if their contracts have not yet expired.

“Essentially, PPPK cannot be terminated or dismissed if their contract has not ended,” said Rini during a working meeting with Commission II of the House of Representatives (DPR RI) at the parliamentary complex in Senayan, Jakarta, on Tuesday, 31 March 2026.

Rini made this statement in response to questions from Commission II members regarding issues of local governments potentially dismissing PPPK due to budget limitations, following the enforcement of a personnel spending scheme capped at a maximum of 30 percent of the Regional Budget (APBD) in January 2027.

She explained that the basis for appointing PPPK is to ensure the continuity of public services. Government agencies have also submitted Absolute Responsibility Statements (SPTJM) when appointing PPPK.

“Once they become civil servants (ASN), we must provide protection to those ASN,” she said.

Regarding the regional personnel spending scheme capped at 30 percent of the APBD as regulated in Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (UU HKPD), as well as cuts to regional transfer funds (TKD), Rini acknowledged that adjustments are indeed necessary.

Rini stated that her office will conduct intensive discussions with the Minister of Home Affairs, noting that Article 146 paragraph (3) of the UU HKPD allows for adjustments to the regional personnel spending percentage based on ministerial decisions.

“Whether later, I do not know, the UU HKPD timeframe is extended or whether there are other interventions,” said Rini.

Previously, Interior Minister Tito Karnavian asked local governments to implement efficiencies and creatively seek additional revenue to prevent the termination of PPPK employment relations.

Tito, when met after a meeting with Commission II of the DPR RI at the parliamentary complex in Senayan, Jakarta, on Monday (30/3), said that Article 146 paragraph (3) of the UU HKPD allows for adjustments, but such adjustments are a last-resort solution.

The Ministry of Home Affairs will monitor the capabilities of local governments first, and the Interior Minister will also deploy teams to the regions.

“Do not expect these last-resort solutions yet. Do not head in that direction before trying. We also want to see which regional heads are capable. There are regional heads who might give up immediately. Well, let the people decide why they chose him, not creative,” he said.

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