Jakarta, CNBC Indonesia – The Ministry of State Apparatus Empowerment and Bureaucratic Reform (PANRB) is currently preparing a new scheme for the procurement of state civil servants (ASN), both for PNS and PPPK. The procurement process will be determined based on the personnel budget allocation received by each agency, both at the central and regional levels.

This employee procurement and budgeting scheme is being prepared in a draft government regulation (RPP) regarding ASN employee management. This regulation is a derivative of Law Number 20 of 2023 concerning ASN which is a replacement for Law No. 5/2014 and must be completed six months after the law takes effect on October 31 2023.

Plt. Assistant Deputy for Talent Management and HR Capacity Building for PANRB Ministry Apparatus, Yudi Wicaksono, said that the new ASN procurement scheme will be based on the employee budget allocation that has been determined by the government per each agency. The budget will be put into a special basket and can be used to procure or increase additional ASN income in the agency.

“The budget tight This is because we are talking about remuneration for ASN which is your responsibility to manage it. “Did you recruit or add employees or improve welfare at your agency,” said Yudi at the ASN Management Arrangement event after Law No. 20/2023 concerning ASN, quoted on Tuesday (7/11/2023).

“So ladies and gentlemen do the calculations, we provide guidance on how to give incentives to employees and how ladies and gentlemen can increase employees’ salaries or income, that is responsible decentralization that we hope is present in this transformation,” he stressed.

Regarding the size of the budget itself, Yudi admitted that there was no special scheme that could be used as a reference, because in central government agencies there is no special budget portion for personnel expenditure as in the regions. Meanwhile, in regions with Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD Law) there is a reference for the amount of employee spending costs at 30% of the total APBD.

“In the regions it might be easier because the HKPD Law already provides a cap of 30% of the APBD, which is a bit difficult at the center, our center doesn’t know the cap yet,” said Yudi.

Nevertheless, Yudi revealed that the Ministry of PANRB had established communication with the Ministry of National Development Planning (PPN)/Bappenas to design variables forming the portion of the employee expenditure budget per central agency. From the results of this communication, he said, the concept that is currently emerging is that employee spending budgets can increase or decrease depending on the performance achievements of each agency.

“We will carry out a simulation to determine the variables used for this new budgeting model, and we are currently simulating it with the Ministry of Finance. So this is an ongoing process and the basket will increase if there is more support for national priorities, if the RB value gets better, then that’s it. “You can top-up (the budget) there,” said Yudi.

Director of Regional Taxes and Regional Levies, Directorate General of Fiscal Balance, Ministry of Finance, Sandy Firdaus, who admitted that he had just been appointed as Director of General Transfer Funds, revealed the reasons behind the changes to the employee budgeting scheme for central and regional agencies.

He said that the concept of employee expenditure budgeting was designed to reflect the problem of ASN procurement which has not been efficient in government agencies, especially in regional apparatus organizations (OPD) which have many employees but do not match the number of people they are supposed to serve.

“Sometimes we are forced to form one OPD, even though it doesn’t serve too many people, then there will be its own basket. The total amount has been set so that it is appropriate for each person depending on the total amount,” stressed Sandy at the same event.

With this scheme for determining employee expenditure, he ensures that each agency that will be allowed to directly recruit ASN, without having to wait for the PANRB minister’s annual decision, will consider the size of the portion of its employee expenditure budget with the procurement needs or increase in income of its respective employees.

“The more employees there are, the more structure there is, the more echelon 2, echelon 3, so this basket will be divided more and more. So if the hope is that the allowance will increase, we can recalculate whether this will happen or not (with the existing budget portion),” said Sandy.

For information, the flow of employee expenditure budgeting will coincide with the proposal of program or activity plans and existing budgets in each agency. The budget submission will be reviewed by the Head of Bappenas, the Minister of Finance, the Minister of PANRB, and the Ministry of Home Affairs by considering the contribution to achieving national priorities, the bureaucratic reform index (RB), and the human resources budget.

After that, the policy for each ministry, institution or region will be determined, regarding the budget, whether there will be an increase in that agency, or the portion of the employee budget will remain constant, or will it even experience a decrease due to the considerations of the three ministers.

If the specified employee expenditure budget decreases, then the agency must transfer or redeploy its employees to adjust the portion of the budget received, salaries will not increase, so the incentives received as income will decrease.

[Gambas:Video CNBC]

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