Indonesia's DPR and Government Vow No Layoffs for PPPK Staff

Vice‑Chair of Commission II of the Indonesian House of Representatives, Bahtra Banong, said parliament and the government have agreed not to terminate contracts or cut the salaries of Pegawai Pemerintah dengan Perjanjian Kerja (PPPK) – both full‑time and part‑time – in regional administrations. The decision comes amid reports that some local governments face fiscal strain in paying PPPK wages.

The DPR has asked the Ministry of Home Affairs to assist regions in improving budget efficiency, citing examples such as a Rp 420 billion saving in Lahat. The ministry is also considering using the General Allocation Fund (DAU) to help cover PPPK salaries where needed. Despite the financial pressures, officials stressed that no reduction of civil‑servant (ASN) salaries will occur and that rumors of salary cuts are unfounded.