Indonesia Government Guarantees Salaries for All PPPK Employees, Rules Out Layoffs

The Indonesian central government has prepared a comprehensive solution to ensure that every civil servant employed under a contract (PPPK) receives their salary and faces no layoffs. The plan, presented by Home Affairs Minister Tito Karnavian during a hearing with the DPR’s Commission II on 30 July 2026, involves coordinated action between the Ministry of Home Affairs and the Ministry of Finance. A key element is the settlement of outstanding revenue‑sharing funds (DBH) amounting to 70 trillion rupiah, which will be paid to cover any shortfalls in regional budgets. The government emphasised that the issue lies not in a lack of funds but in the distribution process, and the new measures aim to secure timely salary payments for PPPK staff across the country.