Indonesia regional governments manage PPPK salary and contract shifts

Regional governments in Indonesia are navigating various fiscal and administrative shifts regarding Government Employees with Work Agreements (PPPK). In Yogyakarta, the Regional House of Representatives (DPRD DIY) expressed concerns that shifting PPPK salary payments from regional budgets to the state budget (APBN) might lead to a reduction in General Allocation Funds (DAU), potentially neutralizing the intended fiscal relief for local governments.

In Gresik, East Java, Regent Fandi Akhmad Yani announced plans to provide holiday allowances (THR) for part-time PPPK workers next year to improve welfare, though this remains dependent on regional financial capacity. He also noted potential future increases through 13th and 14th-month salaries.

Meanwhile, in Gunungkidul, the local government reported that 34 part-time PPPK workers did not receive contract extensions following evaluations. Reasons for the non-renewal included disciplinary violations, resignations, deaths, and employees reaching the mandatory retirement age. The remaining 1,958 part-time workers have had their contracts extended through September 2027.