Indonesian Political, Business & Finance News

Tina Wiryawati: Fiscal Balance Key to Avoiding PPPK Contract Terminations

| | Source: REPUBLIKA Translated from Indonesian | Regulation
Tina Wiryawati: Fiscal Balance Key to Avoiding PPPK Contract Terminations
Image: REPUBLIKA

The implementation of Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments in 2027 will serve as a crucial moment in strengthening regional budget discipline.

West Java DPRD member Tina Wiryawati emphasised that fiscal balance must be maintained to avoid the potential termination of employment contracts for Pegawai Pemerintah dengan Perjanjian Kerja (PPPK).

According to Tina, employee expenditures must be managed carefully to avoid exceeding ideal limits in the Regional Budget (APBD).

“Fiscal balance is not just about numbers; it concerns the sustainability of public services and the job security of employees, including PPPK,” said Tina on Sunday afternoon (29/3/2026).

She reminded that in efforts to achieve budget efficiency, local governments must remain cautious to ensure that policies do not impact vital sectors.

“PPPK in essential sectors such as hospitals and schools must not be affected. This involves basic community services that cannot be disrupted,” she asserted.

She explained that an increase in the number of employees without adequate fiscal capacity risks creating long-term burdens.

In such conditions, local governments may face a dilemma between maintaining budget stability or retaining all existing workforce.

Tina also encouraged local governments to strengthen needs-based budget planning and increase local own-source revenue (PAD).

In this way, fiscal space can be more flexible to accommodate employee expenditures without sacrificing other development sectors. Additionally, she emphasised the importance of periodic evaluations of PPPK recruitment policies to keep them aligned with regional financial capabilities.

“Policies initially aimed at improving the quality of public services should not end up creating uncertainty for those employees themselves,” she stated.

On the other hand, Tina appreciated efforts to increase public awareness in paying taxes, which she views as contributing to strengthening regional finances. She hopes that optimising this revenue can serve as a support in maintaining budget balance.

With disciplined and measured fiscal management, Tina is optimistic that local governments can avoid extreme measures such as PPPK terminations, while ensuring public services remain optimal and sustainable.

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