Indonesian local governments assure PPPK salary payments amid fiscal strain

Nearly all regional administrations in Indonesia, including those in Central Java, report tight fiscal capacities but say that wages for Pegawai Pemerintah dengan Perjanjian Kerja (PPPK) remain secure. The Central Java provincial secretary noted that PPPK salaries are fully funded by the regional budget (APBD) and that, to date, no municipality or city has reported an inability to pay.

The Association of All District Representatives (Adkasi) has submitted a proposal to amend Law No. 23/2014 on regional governance. The draft seeks to give local governments stronger fiscal authority and autonomy over resource management, aiming to prevent future payment problems for PPPK staff. The proposal was presented at a coordination meeting in Batam, Riau Islands.