Sherly Tjoanda Claims North Maluku Lacks Cash Flow to Pay PPPK Salaries

The Governor of North Maluku, Sherly Tjoanda, has admitted that the provincial government no longer has sufficient budget to pay the salaries of Government Employees with Work Agreements, known as PPPK. This was disclosed during a working meeting with Commission II of the Indonesian House of Representatives (DPR RI), which was also attended by the Minister of Home Affairs, Tito Karnavian, and the Minister of Administrative and Bureaucratic Reform, Rini Widyantini.

“We do not have the cash flow to pay PPPK salaries until the end of the year. Whether regional problems have been resolved or not, they have not,” said Sherly. She explained that the requirement for employee expenditure in North Maluku has reached IDR 1.1 trillion, while the General Allocation Fund (DAX) stands at only IDR 960 billion. This means that employee spending has already exceeded the DAU.

To address this, the North Maluku regional government must utilise revenue-sharing funds (DBH) to cover the deficit. Unfortunately, 60% of the DBH for North Maluku is currently being withheld. “Perhaps we are not asking to be paid from the DAU, nor are we asking to be paid from the State Budget (APBN) for the PPPK. We are asking for a portion of that withheld 60% to be returned,” she stated.

Furthermore, the Governor expressed hope that the DPR would hold another meeting to discuss the issues regarding budget cuts, particularly concerning transfers to regions (TKD) for the following year. Sherly expressed concern regarding potential further reductions compared to this year’s position. While she understands the central government’s demand for regional innovation to increase state revenue, she noted that in North Maluku, many fiscal instruments have already been appropriated by the central government. “The Commission Chair mentioned that the State Budget is tight, and we understand that. We must innovate, and we understand that. However, regarding regional issues, many tools available to us have been taken by the central government, leaving us with no room to innovate,” she concluded.