Regional Government is nervous, Jokowi Revamps Civil Servant Budget Regulations News – 1 hour ago

Jakarta, CNBC Indonesia – The regional government (Pemda) is currently worried about the implementation of the employee budget basket system policy plan which will be ratified in the draft government regulation (RPP) regarding the management of state civil servants (ASN).

North Konawe district government official Safruddin expressed this concern because the burden on employee budgets using the basketball system would burden regional finances. So far, many regional governments have relied on the burden of their employee budgets on general allocation funds from the central government.

“The proportion that after the issuance of the ASN management structuring aspects with the birth of Law No. 20/2023 will of course become a burden and there will even be regions that will collapse because the burden is based on regional capabilities,” said


Konawe Regional Secretary Ferdinand Sapan said that this problem is also caused by the APBD structure in many regional governments where the portion of original regional revenue is as high as 15% of each APBD, some even depend on 95% of their income from central government transfer funds.

“In practice, what you have included in this law has good basic principles, but in its implementation in the regions there are many obstacles and challenges that are not what you think,” he stressed.

Plt. Assistant Deputy for Talent Management and HR Capacity Building for PANRB Ministry Apparatus Yudi Wicaksono revealed that the employee budget basket system will not make a region go bankrupt, because it is also burdened with paying regional employees.

He estimates that what could possibly happen is that there are employees in the agency whose salaries or income are below the new income range that the government will set in the RPP for ASN employee management. The RPP is a derivative regulation from Law no. 20/2023 replacement for Law no. 5/2014.

“I don’t think the imposition of a new HR budget will cause HR to collapse, sir. What might happen is that your employees will be paid below the salary range,” said Yudi.

Yudi suggested having a road map for dealing with employees who have the potential to earn below the new salary range in the future. Starting from a reduction to the relocation of employees to other areas that have larger budget or APBD space.

“For this reason, every regional agency that has employees under the new salary range must have a roadmap for when they can be included in the range, how to mitigate it, meaning there must be a reduction,” he said.

Yudi offers another option. According to him, regional governments must be able to increase their share of regional revenue (PAD), or be able to increase the transfer allocation from the central government by strengthening the contribution to national priority achievements, the RB index, and the human resources budget which are reviewed by the Head of Bappenas, the Minister of Finance, the Minister PANRB, and the Ministry of Home Affairs.

“If the budget cannot increase, the PAD cannot increase or the top up from the center cannot increase, then the choice must be redistribution of employees in that agency,” said Yudi.

[Gambas:Video CNBC]

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