Purbaya Allots Rp20.5tn for Regions Facing Payroll Strain

Purbaya Allots Rp20.5tn for Regions Facing Payroll Strain

Reporter

September 3, 2026 | 11:03 pm

TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa stated that the central government is disbursing an additional Rp20.5 trillion to regions beginning to experience financial strain. The capital allocation follows ongoing government monitoring of regional financial conditions.

Purbaya added that the government wants to ensure adjustments in regional fiscal transfers do not compromise public services or delay regional obligations.

“I have prepared the funds; I will inject more money into the system,” Purbaya said during a discussion and forum with 100 Indonesian Economists at the Grand Ballroom of Hotel Indonesia Kempinski, Central Jakarta, on Thursday, September 3, 2026.

He stated that the government continues to monitor regional financial conditions month by month. When several regions began facing difficulties paying salaries, he reported the situation to the President.

“We did this at the beginning of last August. When some regions started to show difficulties paying salaries, I reported to the President and provided additional assistance of Rp20.5 trillion from the central government to the regions,” he said.

Purbaya noted that the government is also striving to ease the burden on regional budgets by covering specific workforce costs. One measure involves gradually taking over salary payments for government employees with work agreements (PPPK).

According to the Finance Minister, this policy is expected to lighten the burden on regional revenue and expenditure budgets (APBD) while maintaining local capacity to deliver public services.

Purbaya previously explained that the government intends to make regional spending more efficient and effective, particularly for infrastructure development.

Read: Why Finance Minister Purbaya Ends Tax Amnesty Program

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