To prevent the layoffs of 9,000 PPPK, NTT Senators call for a revision of the HKPD Law

09 March 2026 oleh admin

Jakarta, dpd.go.id - Abraham Liyanto, member of The House of Regional Representatives of the Republic of Indonesia (DPD RI) from East Nusa Tenggara (NTT), has proposed a revision to Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD). The revision primarily concerns Articles 146 and 147, which require regions to allocate a maximum of 30 percent of total regional budget (APBD) spending for regional employees, excluding teacher allowances.

"Because if this law comes into effect in 2027, 9,000 PPPK employees in the NTT Provincial Government will be laid off," Abraham said in Jakarta, on Sunday (8/3/2026).

The four-term senator explained that the NTT Provincial Government currently allocates 43.63 percent of its regional budget (APBD) for employee salaries. If it were to reduce this figure to 30 percent, the NTT Provincial Government would have to save Rp 540 billion. This equates to 9,000 unpaid PPPK (personnel workers). This means their contracts would have to be terminated.

"We propose that for 3T regions, the budget for employee salaries should be 50 percent of the regional budget. The remaining 50 percent should be allocated to public infrastructure. This is specifically for 3T (Underdeveloped, Frontier, and Outermost) regions, such as NTT, which have minimal Regional Original Revenue (PAD)," suggested the member of Committee 1 of the DPD RI.

The owner of Citra Bangsa University (UCB) Kupang hopes there won't be a uniform approach across all provinces. Regions with significant local revenue (PAD), such as Jakarta, West Java, East Java, East Kalimantan, and Bali, can immediately implement a maximum 30 percent employee salary regulation. Meanwhile, in the 3T (outlying and remote) regions, special regulations or affirmative action must be implemented, tailored to the regional budget (APBD) and local revenue (PAD) of each region.

"Imagine if the 9,000 PPPK laid off were teachers, healthcare workers, and extension workers. The NTT Provincial Government desperately needs these workers. The wheels of the NTT government would be paralyzed if they were laid off. Therefore, we propose revising the HKPD Law or implementing special affirmative action for the 3T regions," Abraham explained.

According to him, 22 regencies and one city in NTT also complained about the same issue. This is because, on average, they budget employee salaries above 30 percent of their regional budgets. If the HKPD Law is enacted, thousands of PPPK (Community Employee Employment Recipients) in each regency and city will be laid off.

Meanwhile, the Head of the NTT Provincial Regional Personnel Agency (BKD), Yosef Rasi, revealed the solution to achieve the 30 percent target required by the HKPD Law. The solution involves the termination of the contracts of 12,519 PPPK (non-performing civil servants). Furthermore, a moratorium policy, or a five-year pause on new civil servant recruitment within the NTT Provincial Government, must be implemented.

If a moratorium is implemented, by 2026, 3,104 PPPK will have their work contracts not extended, and 463 ASN will retire.

In 2027, 524 civil servants retired. Meanwhile, in 2028, 1,438 PPPK (Permanent Personnel Officers) had their contracts terminated and 421 civil servants retired.

In 2029, 436 civil servants will retire, and in 2030, 7,977 PPPK will have their contracts terminated and 454 civil servants will retire.

"By 2030, the number of civil servants in the NTT Provincial Government will reach 10,812. That's the ideal figure, according to the HKPD Law, which is below 30 percent of the regional budget. However, the risk is that over the next five years, 12,519 PPPK will not have their contracts renewed. This will require a moratorium on new civil servant recruitment," Yosef explained.