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[POLITICS] · Indonesia · 8 sources

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Indonesia to Disburse Rp20.5 trillion to 490 Local Governments for Salary Payments

President Prabowo Subianto instructed the Ministry of Finance to provide a one‑off assistance of Rp20.5 trillion to roughly 490 local governments. Finance Minister Purbaya Yudhi Sadewa said the funds will be released by the end of next week and are calculated on the basis of each region’s fiscal gap between its budget (APBD) and actual expenditures. The assistance is not classified as a Transfer to Regions (TKD) but as a centrally‑directed grant aimed at preserving fiscal stability and ensuring timely payment of salaries for civil servants (ASN) and contract‑based employees (PPPK).

The Ministry of Home Affairs outlined three steps to help regions meet payroll obligations: urging local efficiency measures, facilitating the disbursement of the DBH (Dana Bagi Hasil) share, and providing additional incentives where needed. Pasaman Barat in West Sumatra has already received an official letter confirming an extra Rp55.42 billion to cover its ASN payroll.

Overall, the program targets the financial pressures faced by many sub‑national administrations, with the goal of avoiding salary delays, layoffs or cuts to public‑service benefits.

Entities

Bima Arya Sugiarto · Fachri Husni Alkatiri · Local governments of Indonesia · Ministry of Finance (Indonesia) · Ministry of Home Affairs (Indonesia) · Ministry of Home Affairs (Kemendagri) · Muhammad Tito Karnavian · Nufransa Wira Sakti · Pasaman Barat · Prabowo Subianto · President Prabowo Subianto · Purbaya Yudhi Sadewa

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