Indonesian Political, Business & Finance News

Reasons for the Fall in Teachers' Salaries This Year

| Source: TEMPO_ID Translated from Indonesian | Economy

Iman Zanatul Haeri, head of the Advocacy Division for Teachers at the Indonesian Teachers Association and Educators (P2G), has highlighted a sharp reduction in the share of the education budget transferred from the central government to regional authorities over the last three years. He argues that the policy has a direct impact on local governments’ ability to fund teachers, particularly those employed as PPPK (Government Employees with Work Agreements).

According to data provided by P2G, the 2024 education budget totalled Rp 655 trillion. Of that, transfers to the regions and village funds amounted to Rp 346 trillion, or 52.82 percent. But in 2025, despite the total education budget rising to Rp 724 trillion, transfers to the regions were only around Rp 347.9 trillion, or 48.08 percent.

The decline was more pronounced in 2026. From a total education budget of Rp 769 trillion, regional transfers shrank to Rp 264 trillion, or just 34.33 percent. ‘In other words, although the total education budget is rising, the portion transferred to the regions is falling drastically,’ Iman said when contacted on Tuesday 3 March 2026.

Iman noted that the reduction in transfers affected more than 500 local governments experiencing cuts in education funding. As a result, several regions are said to be unable to pay full salaries to PPPK teachers.

Based on data compiled by P2G, PPPK teachers in Musi Rawas Regency, South Sumatra, receive only about Rp 100,000 per month. In Dompu Regency, West Nusa Tenggara, about Rp 139,000 per month. Meanwhile in Langkat Regency, North Sumatra and Blitar Regency, East Java, salaries are in the region of Rp 500,000 per month.

According to Iman, this situation reflects fiscal pressure faced by regional governments after the share of education budget transfers was cut. ‘If the funds transferred to the regions from the education budget are reduced, automatically the regional governments’ fiscal space to fund education shrinks,’ he said.

P2G also suspects that the decline in transfers to the regions will affect the additional income for staff (TPP) for teachers, both PPPK and civil servant teachers (PNS). TPP is known to come from regional transfer funds (TKD).

Iman cited the reduction in TPP in Banten Province, which is directly related to the shrinking TKD from the 2026 education budget. ‘I think it is reasonable to suspect the decrease in TPP in Banten results directly from the reduction in TKD from the education budget that fell in the 2026 education APBN,’ he said.

P2G has called on the central government to explain the scheme for allocating the education budget so that it does not trigger chain reactions affecting teacher welfare in the regions. They also urged an evaluation of education fiscal policy to ensure it does not disadvantage education personnel on the front line of service delivery.

Earlier, a PPPK teacher in Banten Province complained about plans to cut TPP by as much as 40 percent from previous levels. The information circulated in a draft for disbursing performance allowances this year.

‘The latest draft circulating has been sent to the finance section for consideration. But the amount has already been adjusted or cut. We PPPK are becoming the scapegoats of regional efficiency,’ said a PPPK teacher from Tangerang City who asked to be identified as Ilham, on Tuesday, 3 March 2026.

Another PPPK teacher, named Amir, revealed that since his appointment as a PPPK teacher in August 2025, he has never once received TPP. ‘Now suddenly this year we are told we will get TPP of Rp 350,000 per month—honestly that is extremely disappointing for us PPPK teachers of the 2025 cohort,’ Amir told Tempo on Sunday, 1 March 2026.

Amir suspects that any bad news about cutting teachers’ rights is caused by the Free Healthy Meals (MBG) programme. He has felt the impact since MBG began. ‘I think the MBG is the reason for these adjustments,’ he said.

Another PPPK teacher, named Budi, said PPPK cohorts 2021–2024 previously received TPP of Rp 2.5 million per month. But in the latest draft, that figure is down to Rp 1.5 million. Meanwhile PPPK cohorts 2025 are listed as receiving only Rp 350,000 per month. ‘This is only a draft, but if we stay silent and do not speak out, it could be implemented,’ Budi told Tempo on Thursday, 26 February 2026.

Earlier, high school and vocational school teachers under the Provincial Government of Banten reportedly received three components of income: basic salary, additional allowances for duties such as homeroom or deputy principal, and TPP. However, those additional allowances were unilaterally removed since 2024 on the grounds that such duties are intrinsic to a teacher’s role. ‘Without socialisation, they were suddenly removed,’ he said.

Tempo has attempted to reach the Head of the Banten Province Education Office, Jamaludin. As of this report, Jamaludin had not responded.

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