Minister Tito Considers Revising Regional Head Salary Rules, Deems Them Outdated
Interior Minister (Mendagri) Tito Karnavian has opened the possibility of revising Government Regulation (PP) Number 109 of 2000 on the Financial Entitlements of Regional Heads and Deputy Regional Heads. The regulation, now 26 years old, is considered to no longer reflect current economic conditions or the workload of regional heads.
Tito said one aspect that could be evaluated is the Operational Support Cost (BPO) component, which has been linked to the amount of Locally Generated Revenue (PAD).
“So within PP Number 109 of 2000 on the financial entitlements of regional heads and deputy regional heads, there is a BPO (operational support cost) component. It is regulated there and linked to PAD,” Tito said after a meeting with Commission II of the House of Representatives (DPR) at the Parliamentary Complex in Senayan, Jakarta, quoted by Detikcom on Thursday (30/7/2026).
According to Tito, the regulation should be adjusted to current conditions, given that operational costs and economic conditions have changed significantly since the rule was issued.
“So if it is to be reformed, reformulated and adjusted to present circumstances, because cost increases between 2000 and 2026 are clearly very different,” he continued.
However, Tito stressed that any adjustment to regional heads’ financial entitlements would not be granted automatically. The government will link it to the performance achievements of regional heads.
“Exchange rates will also differ, so if it is adjusted, it must be linked to one thing: performance. Performance must be good, and there are seven key indicators,” he explained.
In addition, the amount of financial entitlements is proposed to continue taking into account regional fiscal capacity through PAD. Under this scheme, regional heads are expected to be encouraged to increase regional revenue through various innovations without burdening the public.
“So if operational spending is linked to the amount of PAD, it is not only the regional heads who benefit, but the public benefits as well,” he said.
He added that higher PAD will ultimately enlarge the capacity of the Regional Budget (APBD), thereby broadening the fiscal space for development and public services.
Furthermore, Tito emphasised that the revision of PP Number 109 of 2000 will be discussed further at government level. The government will later form a team involving several ministries and agencies.
“It is perhaps time for a revision, but of course we will set up a team at government level and discuss it with the Finance Minister and Bappenas,” he asserted.
Earlier, the proposal to revise the regulation was put forward by the Association of All Indonesian Regency Governments (APKASI) during a hearing with Commission II of the DPR on Thursday (30/7/2026). APKASI judged that the regulation on regional heads’ financial entitlements no longer aligns with the increasing burden of duties and complexity of regional governance.
“The regulation on regional heads’ financial entitlements is no longer in step with developments. The authority and responsibilities of regional heads and deputy regional heads today carry an increasingly heavy burden and complexity,” said APKASI Chairman Bursah Zarnubi.