Prabowo Disburses Rp18.9 Trillion to 546 Regions for PPPK Salaries

President Prabowo Subianto has decided to allocate a budget of Rp18.9 trillion to 546 regions to enable them to pay the salaries of Government Employees with Work Agreements (PPPK).

Minister of Home Affairs Tito Karnavian stated that the decision was formalised through Minister of Finance Decree Number 198 of 2026, issued on 5 August 2026.

“The total additional support from the central government to the regions, if I am not mistaken, amounts to 546 regions receiving Rp18.9 trillion,” Tito said after a meeting at the parliamentary complex on Monday (10/8).

In principle, Tito said, no PPPK employee should be laid off, leaving them jobless or unemployed. Based on the results of the inter-agency meeting, he noted there are three handling options.

First, regional governments can implement efficiency measures, such as reducing official travel and eliminating unnecessary meetings. Second, for regional governments that have unclaimed revenue-sharing funds (DBH), the central government will immediately disburse them. Third, regional governments that cannot implement efficiencies or lack DBH can opt for additional general allocation funds (DAU). It is through this third option that the government subsequently issued Minister of Finance Regulation Number 198 of 2026.

According to Tito, of the total Rp18.9 trillion disbursed, Rp10 trillion consists of outstanding DBH that had not been paid. The remaining Rp8.9 trillion is an additional DAU allocation.

“With this additional support, we hope it will resolve the issues surrounding employee expenditure, both for PPPK and part-time workers, to be financed and paid by their respective regional governments,” he said.