Part-Time PPPK Workers in Sleman Face Layoff Risk Due to Budget Efficiency Measures

Policies limiting employee expenditure to a maximum of 30% of the regional budget (APBD) have the potential to impact the fate of local government employees. Part-time PPPK workers are said to be the most vulnerable group affected, even facing the threat of non-renewal of their contracts.

This refers to Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (UU HKPD). Article 146 paragraphs 1 and 2 state: ‘Regions must allocate regional employee expenditure outside of teacher allowances allocated through TKD (transfers to regions), at a maximum of 30% of total APBD expenditure. If the employee expenditure percentage exceeds 30%, the region must adjust the employee expenditure portion within a maximum of five years from the date this law is enacted.’

The Head of the Personnel, Education, and Training Agency (BKPP) of Sleman Regency, Wildan Solichin, explained that the salary scheme for both PNS and PPPK employees has so far depended on the employee expenditure budget sourced from TKD. He stated that with this efficiency policy, every region will certainly be affected, not just Sleman.

“Employee salaries, for PNS and PPPK, are indeed schemed from employee expenditure, supported by TKD. So, the central policy, in the name of efficiency, reducing transfers to regions, will automatically impact all regions,” said Wildan when contacted by reporters on Friday (27/3/2026).

He emphasised that the regional government will still strive to pay salaries that are the rights of the employees. However, if this efficiency policy continues, it is possible that there will be rationalisation of salaries.

“If there is an order like that (salary rationalisation), like it or not, we will have to review employee salaries. It might be rationalised, but until now, there has never been such an incident,” he said.

Therefore, to meet this obligation, the regional government has no choice but to sacrifice some budget items. Such as infrastructure expenditure, maintenance, or procurement of goods and services.

“So, what we sacrifice are costs outside of salaries. Development will certainly decrease, maintenance will decrease, procurement of goods and services will decrease,” he explained.

A different situation will be faced by those with part-time PPPK status. Wildan said that their salary scheme is not included in employee expenditure but through the goods and services scheme. This makes the position of part-time PPPK workers vulnerable to layoffs.

“Indeed, it’s different for part-time PPPK. They will also be vulnerable to impact if the region is unable to cope, increasingly efficient, so perhaps those who will be sacrificed are the part-time colleagues,” he explained.

This condition is even more vulnerable because their contract scheme only lasts for one year.

“The scheme is easy to terminate because they are contracted for only 1 year,” he said.

Furthermore, the Sleman Regency Government assures that it will continue to strive to maintain the continuity of the workers. Wildan emphasised that the regional government is trying not to take extreme steps such as terminating contracts due to budget constraints.

“Indeed, our spirit is to avoid any termination of employment because we don’t have money. That must not happen,” he stressed.

Currently, Sleman Regency records around 2,200 PPPK personnel, while part-time PPPK reaches around 3,500 people. The total budget for PPPK salaries ranges from Rp 8 billion to Rp 8.5 billion per year.

For 2026, Wildan assured that the employee salary budget is still safe. However, for the following years, the situation will very much depend on central policies and the region’s financial capacity.

“The budget calculation is annual. This year it’s safe, next year it will be calculated again according to the conditions and existing policies,” he said.

Meanwhile, one PPPK in Sleman Regency with initials ZN admitted that only in the last few days has he received information regarding the policy. He said he is still waiting for definite policies from the region, including the impact of this efficiency on employment status.

“So far, I haven’t received info on the influence or direct impact of efficiency on PPPK or part-time status,” he said.