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🇮🇩 Indonesia /Environment & Climate

Indonesian Finance Minister: Teacher status change won't harm fiscal sustainability

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Indonesia's Finance Minister assures that the status change for contract-based teachers (PPPK) to central government employees will not harm fiscal sustainability.
  • A specific budget allocation has been prepared to fund this policy shift.
  • The government and the House of Representatives (DPR) have agreed on the transition, with full-time PPPK teachers potentially becoming civil servants in 2027.

Indonesian Finance Minister Purbaya Yudhi Sadewa has guaranteed that the planned transition of contract-based teachers (PPPK) to central government employee status will not jeopardize the nation's fiscal sustainability. This assurance comes amid concerns about the potential impact of the policy on the state budget.

So, we have calculated everything, and this can be done without endangering fiscal sustainability.

— Purbaya Yudhi SadewaThe Finance Minister assured that the budget implications of the teacher status change have been calculated.

Minister Sadewa stated that his ministry has already allocated a special budget to accommodate this change, ensuring it can be implemented without endangering long-term fiscal health. He reaffirmed that the government's target deficit for the 2027 State Budget and Revenue Plan (RAPBN) will remain at 2.40 percent of Gross Domestic Product (GDP), equivalent to Rp671.2 trillion, unaffected by the teacher status adjustment.

"Based on our meeting, we have also conducted simulations for this year's budget and subsequent years. These steps are being taken without jeopardizing our fiscal condition in 2027, which will remain at a deficit of 2.4 percent," Sadewa explained during a press conference in Jakarta.

Based on our meeting, we have also conducted simulations for this year's budget and subsequent years. So, these steps are being taken without jeopardizing our fiscal condition in 2027, which will remain at a deficit of 2.4 percent.

— Purbaya Yudhi SadewaThe Finance Minister detailed the budget projections and confirmed the deficit target.

Minister of State Secretary Prasetyo Hadi elaborated that this policy is the result of an agreement between government officials and the House of Representatives (DPR). The plan involves upgrading part-time PPPK teachers to full-time status. Additionally, those already holding full-time PPPK positions will have the opportunity to undergo selection processes to become permanent civil servants (PNS) in 2027.

We agreed that the employment status will be transferred to central government employees or central government personnel.

— Prasetyo HadiThe Minister of State Secretary confirmed the agreement on the teacher status change.

Hadi emphasized that the government is actively synchronizing employee data for teachers across various statuses. He stressed that resolving teacher employment issues requires a comprehensive approach, considering numerous factors. The government is committed to finding solutions swiftly, incorporating input from various teacher associations alongside discussions with the DPR.

We are committed to continuing to find solutions as quickly as possible.

— Prasetyo HadiThe Minister of State Secretary addressed the ongoing efforts to resolve teacher employment issues.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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