Thousands of PPPK in Central Java Breathe Easier as DAU and DBH Funds Are Disbursed
Dozens of regions in Central Java have been experiencing fiscal difficulties to the point of being unable to pay Government Employees with Work Agreements (PPPK). However, they can now breathe a little easier after receiving an injection of General Allocation Funds (DAU) and Revenue Sharing Funds (DBH) from the central government totalling Rp268 billion.
Media Indonesia monitoring on Thursday (20/8) found that 18 regional governments in Central Java were struggling to meet PPPK salary needs due to fiscal difficulties following cuts to Regional Transfer Funds (TKD) from the central government. Various efforts were made to ensure that employee payroll could continue.
Amid the panic, the dozen or so regencies and cities experiencing fiscal difficulties can now breathe a little easier, after the central government disbursed additional DAU of Rp184 billion and DBH of Rp83 billion, bringing the total to Rp268 billion that can be used to meet PPPK salary needs.
“Not all regions received the DAU and DBH, but at least 18 regions in Central Java received a share,” said Dwianto Priyongroho, Head of the Central Java Provincial Regional Financial and Asset Management Agency (BPKAD).
The disbursement, Dwianto continued, is the realisation of regional government aspirations facing obstacles in meeting employee salary payments, following the issuance of Finance Minister Decree (KMK) 198 dated 5 August 2026 to finance salary and allowance needs across all regional governments.
There are 16 regions that received under-disbursed DBH, Dwianto Priyongroho revealed, namely Brebes, Kebumen, Pemalang, Banjarnegara, Sragen, Blora, Purbalingga, Pati, Tegal, Wonogiri, Pekalongan, Karanganyar, Wonosobo, Tegal, Temanggung, and Rembang.
According to Dwianto Priyongroho, the Central Java Provincial Government had previously written to the Ministry of Finance and the Ministry of Home Affairs regarding the position of employee spending in 35 regencies, cities and the province. The majority of employee spending in the regions is for basic public services, especially education and health personnel.
Dwianto continued that employee spending budgets in most regency and city governments have already exceeded 30 per cent, even though under Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (HKPD), employee spending should be a maximum of 30 per cent of the regional budget (APBD).
“As a result, the fiscal condition of regional governments is increasingly under pressure, especially with the cuts to Regional Transfer Funds (TKD) averaging 30 per cent,” he added.
Meanwhile, Central Java Deputy Governor Taj Yasin Maimoen strongly welcomed the policy of making PPPK teachers central government employees, as this would ease the financial burden on regional and provincial governments.
The policy, according to Taj Yasin Maimoen, was previously pushed through input provided by regional and provincial heads. Nevertheless, he could not yet confirm when the policy would be implemented, because the number of PPPK teachers to be borne by the central government is very large.
“We are still waiting for technical guidance from the Ministry of Home Affairs, both regarding the number of PPPK teachers and the PPPK year proposed,” said Taj Yasin Maimoen.
Taj Yasin Maimoen said the budget normally used for PPPK salaries could be shifted to other sectors, especially to fund development programmes that have already been established.