Finance Minister Purbaya Yudhi Sadewa addresses regional funds and PPPK transitions

Finance Minister Purbaya Yudhi Sadewa has addressed several key fiscal and administrative policies regarding regional funds and government employees. He noted that regional financial liquidity remains solid, with approximately Rp 195.2 trillion in unused regional budgets sitting in banks as of August 31, 2026. The Minister urged local governments to optimize budget absorption to ensure fiscal stimulus effectively drives local economic growth rather than remaining idle in banking institutions.

Regarding human resources, the government is preparing to transition the status of government employees. A budget of approximately Rp 31.1 trillion has been allocated to facilitate the transition of part-time PPPK (Government Employees with Work Agreements) to full-time status starting in January 2027, with salaries to be covered by the central government. Furthermore, a gradual program is planned through 2029 to allow full-time PPPK teachers the opportunity to transition into permanent Civil Servant (PNS) roles, a move intended to reduce the financial burden on regional governments.