Tito Karnavian Reveals 39 Regions Struggling to Pay PPPK Employees; Government Prepares Four Solutions
Jakarta, VIVA – Minister of Home Affairs Tito Karnavian has revealed that dozens of local governments are facing serious fiscal pressure, making it difficult to pay Government Employees with Work Agreements (PPPK). This situation has become a primary concern for the central government, given that resolving the status of honorary workers and the appointment of PPPK personnel are key agendas in bureaucratic reform.
In a meeting with Commission II of the Indonesian House of Representatives (DPR RI), Tito stated that at least 39 local governments are experiencing financial limitations that require special attention from the central government. According to Tito, the primary issue facing several regions is the high proportion of personnel expenditure, which has reached approximately 50 per cent of the total Regional Revenue and Expenditure Budget (APBD). Conversely, the ability of these regions to increase Regional Original Income (PAD) remains low, further restricting fiscal space.
“There are 39 regions that we need to consider. Relying solely on PAD will be difficult,” said Tito Karnavian during the meeting with Commission II of the DPR, as reported on Tuesday, 9 June 2026.
Ballooning Personnel Expenditure Leaves Regions Struggling to Breathe
Tito explained that high personnel expenditure poses a significant challenge for numerous regions. When a large portion of the APBD is absorbed to fund civil servants, the space available for development and other public services becomes increasingly narrow.
Nevertheless, the government does not intend to implement solutions involving the dismissal of regional employees. Instead, the government is actively seeking various solutions to ensure that regions can continue to meet their obligations regarding the payment of PPPK salaries and honorary workers without disrupting government operations.
Consequently, the government has prepared several strategic steps to assist regions experiencing budget pressures.
Four Solutions Prepared by the Government
Tito outlined at least four steps currently being prepared by the government to help regions overcome the issue of PPPK payments.
- Moratorium on New Honorary Recruitment
The first step involves controlling the growth of personnel expenditure by limiting the recruitment of new honorary workers. The government has requested that regions refrain from adding administrative staff in the near future to prevent further budget burdens. However, exceptions may be granted for sectors that genuinely require additional manpower, such as education and health. According to Tito, the needs of teachers and healthcare workers remain a priority as they are directly related to basic public services.