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4 clusters · 15 sources · 15 days · First seen · Last updated

Indonesia Finance Ministry confirms direct salary payments

Overview

The Indonesian Ministry of Finance has clarified that civil servant (ASN) salaries will continue to be processed through the existing banking system. Finance Minister Suahasil Nazara issued this clarification in response to a proposal by the Ministry of Cooperatives to utilize Merah Putih Village/Sub-district Cooperatives as partners for salary and pension disbursements.

The proposal, intended to expand the economic role of cooperatives, has faced significant opposition from various sectors. Members of the PDI Perjuangan party have called for the plan’s cancellation, citing concerns regarding inefficiency. Critics also highlighted the lack of deposit insurance from the Indonesia Deposit Insurance Corporation (LPS) for cooperative funds, warning that shifting payments to cooperatives could pose financial risks to millions of employees in the event of insolvency or mismanagement.

Finance Minister Nazara has since confirmed that salaries for civil servants (PNS), military personnel (TNI), and police officers (Polri) will continue to be paid directly into personal bank accounts. He emphasized the use of a government-to-person (G2P) payment system, where funds are transferred from the state general treasury directly to individual accounts to modernize operations and increase efficiency. This distribution is facilitated through state-owned banks (Himbara)—including BRI, BNI, Bank Mandiri, and BTN—as well as other qualified commercial banks. The direct payment scheme also extends to teacher professional allowances and social protection programs, such as the Family Hope Program (PKH).

Entities

Ministry of Finance · Ministry of Cooperatives · Indonesia · Ferry Juliantono · Suahasil Nazara

Timeline

  1. [POLITICS] 7 sources
    Indonesia Ministry of Finance confirms direct salary payments to civil servants

    Indonesia's Finance Minister rejected proposals to use cooperatives for salary distribution, affirming that civil servants, military, and police will receive direct payments to their personal bank accounts.

  2. [POLITICS] 5 sources
    Indonesia Finance Ministry denies plan to pay civil servant salaries via cooperatives

    Indonesia's Finance Ministry confirmed civil servant salaries will continue to be paid via banks, rejecting proposals to use cooperatives despite political debate over financial security and efficiency.

  3. [BUSINESS] 4 sources
    Indonesia Ministry of Cooperatives proposes civil servant salary payments via cooperatives

    Indonesia's Minister of Cooperatives has proposed a scheme to the Ministry of Finance to allow cooperatives to facilitate civil servant salary and pension payments.

  4. [BUSINESS] 2 sources
    Ministry of Cooperatives explores pension payment role for cooperatives

    The Indonesian Ministry of Cooperatives is exploring the possibility of cooperatives becoming partners for civil servant pension and salary payments, without replacing existing banking services.

Sources

antaranews.com · bisnis.liputan6.com · cnbcindonesia.com · economy.okezone.com · gelora.co · industry.co.id · insight.kontan.co.id · jawapos.com · jpnn.com · jurnas.com · katadata.co.id · m.jpnn.com · mediaasuransinews.co.id · okezone.com · pendidikan.harianjogja.com

This summary has been updated 4 times: see revision history