Central government takeover of PPPK teachers seen as solution for regional salary issues

The plan to transfer the status of contract-based public workers (PPPK) for teachers to the central government is viewed as a viable solution for regional governments struggling with employee salary payments. Dwianto Priyongroho, Head of the Central Java Provincial Financial and Asset Management Agency (BPKAD), welcomed the initiative, stating it offers a way out for provincial and district/city governments facing various financial challenges related to their employees.

Priyongroho noted that in Central Java, employee spending in most regional governments already exceeds 30 percent of their regional budgets. This is problematic as Law No. 1 of 2022 on Financial Relations between the Central and Regional Governments mandates that employee spending should not exceed 30 percent of the regional budget.

He expressed hope that if payments are managed through central government allocations, the needs for employee salaries will be met accurately, reflecting the data and requirements of each regional government. Priyongroho cautioned that discrepancies in the data for PPPK teachers and part-time PPPK could further burden regional governments. "If the data is not in accordance, it will certainly affect the transfer value from the central government to the regional government, which will be burdensome if it's insufficient. Because the needs for PPPK and part-time [employees] are not small," he said.

Beyond educators, Priyongroho added that medical personnel constitute the majority of PPPK in Central Java. "So, PPPK is all related to fulfilling basic public services," he stated, highlighting the broad scope of these contract workers' roles in public service delivery.