Several Central Java Regencies Unable to Pay Civil Servant Salaries After Transfer Fund Cuts

REPUBLIKA.CO.ID, SEMARANG — Central Java Vice Governor Taj Yasin acknowledged that a number of regency and city governments in the region are unable to pay the salaries of their civil servants (ASN), including government employees with work agreements (PPPK). He stated that this matter has been reported to the central government.

Yasin explained that the Central Java provincial budget (APBD) is currently sufficient to pay the salaries of its nearly 66,000 employees. “For regencies and cities, there are some that are not able. We have reported this to the central government because it is related to regional transfers,” he said after attending a plenary meeting at the Central Java DPRD office in Semarang on Wednesday (5/8/2026).

When asked how many regency and city governments in Central Java are unable to pay their civil servant salaries, Yasin said he could not yet provide an exact figure. “We will evaluate the data again later. For now, there are several,” he stated.

According to Yasin, to address the fiscal limitations faced by regency and city governments, the Central Java provincial administration has attempted to increase their locally-generated revenue (PAD). “We are looking for solutions together. As regional heads, we must be responsible,” he said.

Nevertheless, Yasin expressed hope that the central government’s transfer funds (TKD) would not be cut again next year, as they remain a significant component of the fiscal capacity of regencies and cities.

Meanwhile, the Head of the Central Java Provincial Financial and Asset Management Agency (BPKAD), Dwianto Priyongroho, revealed that most regency and city governments in Central Java are still heavily dependent on TKD and provincial government transfer funds. Compared to the provincial government, the majority of regency and city governments have personnel expenditure exceeding 30 percent of their budgets. “At the provincial level, personnel spending is 26 percent, which is below the 30 percent threshold and in accordance with regulations, and salaries are still paid on schedule without any obstacles. For regencies and cities, although the percentage of personnel spending is above 30 percent, both ASN and PPPK salaries can still be financed through their respective regional budgets,” Dwianto said.