Unable to Raise Civil Servant Salaries, BKN Chief Designs Cost-Cutting Programme

Jakarta, CNBC Indonesia – Civil servants (ASN) will soon be required to work according to their place of domicile. The policy is currently being trialled at the State Civil Service Agency (BKN).

Head of BKN Zudan Arif Fakrulloh said the programme was designed because the agency was not yet able to raise civil servants’ income, so at the very least their working expenses could be reduced.

“When I cannot increase income, it would be very wise for all leaders to reduce the level of expenditure. That is why we are starting to execute this programme,” Zudan said in a post on BKN’s Instagram account on Wednesday (22/7/2026).

According to Zudan, the programme, which prioritises employees’ domicile and family, aims to save civil servants’ living costs while still encouraging better public service performance.

“BKN is bringing civil servants closer to their families, closer to their domiciles. God willing, we will be able to bring our civil servants closer,” Zudan said.

Zudan stressed that the programme will initially be limited to civil servants within BKN. Those at other institutions, comprising permanent civil servants (PNS) and contract-based employees (PPPK), may follow suit if the trial is deemed effective in boosting performance and efficiency.

“This is for BKN only for now. Hopefully it can inspire ministries, agencies, provinces and regencies, so it can become a national movement,” he explained.

He said he designed the programme in response to civil servants’ concerns about fulfilling their responsibilities as parents whilst still meeting their obligations of service to the state.

“Fulfilling responsibility as a mother, as a father, giving full attention to their children, wanting to be more efficient and reduce expenditure,” Zudan affirmed.

“If husband and wife are together, they can save on plane tickets, save on kitchen, electricity and water expenses – this I understand,” he said.