The Indonesian government has approved a policy to shift the payment of Pegawai Pemerintah dengan Perjanjian Kerja (PPPK) salaries to the national budget (APBN) starting in 2027, allocating Rp23 trillion for this purpose, according to multiple regional and national sources.
The decision, announced by the central government and endorsed by the DPR RI, aims to reduce the financial burden on local governments by transferring the responsibility of paying PPPK salaries—primarily in education and healthcare—from local budgets (APBD) to the national budget. This move has been welcomed by regional leaders like Garut Regent Rudy Gunawan, who highlighted the potential for reallocating local funds toward infrastructure and public services.
Policy Details and Funding
The central government has allocated Rp23 trillion in APBN 2027 to cover PPPK salaries, with a focus on education and healthcare sectors.
Governor Andi Sudirman Sulaiman of South Sulawesi praised the policy, calling it a strategic move to ease fiscal pressure on regional governments. This is a breakthrough from President Prabowo through the relevant ministries,
he said, emphasizing that the shift would allow local authorities to focus on development projects Sulselprov.go.id. Similarly, Garut Regent Rudy Gunawan described the policy as a fiscal relief, noting that in 2022 and 2023, Garut allocated a significant amount for PPPK teacher and health worker salaries, as reported by Sinar Priangan.
The policy also includes a broader fiscal reallocation. In Garut, for instance, Rudy Gunawan stated that redirecting PPPK salaries to APBN would allow the regency to prioritize infrastructure, goods, and services spending. This will provide more fiscal space for development and public services,
he said, as cited in Sinar Priangan. A similar sentiment was echoed by Cianjur’s BKPSDM head, Akos Koswara, who noted that the regency’s 15,000 PPPKs—8,000 full-time and 7,000 part-time—could free up resources for infrastructure and public service improvements if the policy is implemented, as reported by iNews Cianjur.
Regional Reactions and Concerns
While some regional leaders welcomed the policy, others raised concerns about implementation. The DPRD of Blora, for instance, called for clarity on how the shift would affect local budgets, particularly the Transfer to Daerah (TKD) funds. If PPPK salaries are transferred to the central government, we need to know how this will impact our TKD, said DPRD member Supardi Harian Muria. Supardi emphasized that without clear regulations, local governments might face administrative and fiscal challenges, as the current lack of official directives leaves uncertainties about responsibilities and funding mechanisms.
In East Java, Kadindik Aries Agung Paewai confirmed that 3,974 part-time PPPK teachers would transition to full-time roles by 2027. However, he stressed that local governments would await technical regulations from the central government before taking action detikcom. Similarly, Lampung’s Secretary of State Marindo Kurniawan stated that while the province welcomed the decision, it was still waiting for technical guidelines from the central government, particularly from the BKN and ministries overseeing education and health, as reported by Rilis.
Meanwhile, Cianjur’s BKPSDM acknowledged the potential benefits but emphasized the need for regulatory clarity. Akos Koswara noted that the regency had not yet received formal guidelines on the policy’s implementation, leaving it to wait for the central government’s regulations, as stated in iNews Cianjur. This hesitation reflects broader concerns among regional authorities about the practical implications of the policy.
Unresolved Issues and Protests
The policy has also sparked concerns among part-time PPPK workers. The Forum of Part-Time PPPK Indonesia (PPWI) demanded equal treatment across all sectors, arguing that the current focus on education and healthcare risks creating disparities. We are calling for fair allocation of funds across all PPPK roles, not just education and health, stated PPWI Chairman Herru Gama Yudha Janalokajournal. The forum also set a deadline of October 7, 2026, to hold officials accountable for commitments made to address PPPK status, as reported in Janalokajournal.
The PPWI also threatened mass mobilization in Jakarta if the government failed to meet its deadlines, as outlined in Janalokajournal.
The policy’s implementation faces challenges related to legal frameworks. The PPWI emphasized that any transition must align with KepmenPANRB No. 16/2025, which governs all civil service positions, as noted in Janalokajournal. Without such alignment, regional governments and PPPKs risk facing inconsistencies in their legal and fiscal obligations.
Despite these challenges, the policy has been broadly supported by regional leaders. Gubernur Andi Sudirman of South Sulawesi highlighted its role in providing greater fiscal space for regional development and public services,
while Garut’s Rudy Gunawan expressed optimism about its potential to strengthen development and public service funding, as cited in Sulselprov.go.id and Sinar Priangan. However, the lack of finalized regulations and the need for transparency remain critical hurdles to its successful execution.