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Indonesia Finance Ministry confirms direct salary payments

Updated 4 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-22 00:41 UTC → 2026-10-23 09:38 UTC · added removed

Indonesia Finance Ministry denies cooperative confirms direct salary plan payments

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. This development follows earlier resistance from regional officials, such as the Yogyakarta Regional House of Representatives, which raised concerns regarding “potential bureaucratic chaos” Finance Minister Nazara has since confirmed that salaries for civil servants (PNS), military personnel (TNI), and data security, as well as calls from teacher associations to prioritize existing teacher cooperatives over the proposed Merah Putih model. In response police officers (Polri) will continue to be paid directly into personal bank accounts. He emphasized the proposal submitted by Minister use of Cooperatives Ferry Juliantono, other government officials have reinforced a government-to-person (G2P) payment system, where funds are transferred from the status quo. Minister of Administrative state general treasury directly to individual accounts to modernize operations and Bureaucratic Reform Rini Widyantini stated that while no current plan exists 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 shift the payroll scheme, any method must be “easy, transparent, teacher professional allowances and convenient for employees.” Deputy Minister of Home Affairs Bima Arya cautioned against implementing a system that might “regress or complicate the process,” noting that social protection programs, such as the current banking system is already established. Family Hope Program (PKH).

Versions

  1. 2026-10-23 09:38 UTC Indonesia Finance Ministry confirms direct salary payments
  2. 2026-10-22 00:41 UTC Indonesia Finance Ministry denies cooperative salary plan
  3. 2026-10-21 07:01 UTC Indonesia Finance Ministry denies cooperative salary plan
  4. 2026-10-19 06:55 UTC Debate grows over Indonesia cooperative salary proposal
  5. 2026-10-15 00:18 UTC Indonesia cooperative civil servant payment proposal

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