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View all search resultsThere are 39 regencies and cities in Indonesia, which cannot pay their contract employees using their own regional budgets after the central government cut funding.
he central government is preparing a salary scheme for government contract employees (PPPK) in regions whose regional budgets cannot afford to pay those employees, a top legislator said.
“We have the data of 39 regencies and cities in Indonesia who cannot pay their contract employees using regional budgets after a series of assessments,” chairman of House of Representatives’ Commission II, Muhmmad Rifqinizamy Karsayuda, said in Makassar on Friday.
“Regional administrations have examined their fiscal conditions. They also have taken efficiency measures but there is no other way other than being assisted by the central state budget.”
He said one scheme being prepared was by adding General Allocation Funds (DAU) to be transferred to regions. The funds are expected to finance PPPK’s salaries.
However, the Law on Civil Servants stipulates that PPPK’s salaries are paid from regional budget while DAU is used to pay civil servants’ salaries.
“DAU is used only to pay civil servants’ salaries because in Civil Servants Law PPPK’s salaries are taken from regional budgets,” Rifqinizamy said.
“Insya Allah [God willing], PPPK salaries in the regions will be transferred from State Budget in form of additional DAU.”
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