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🇮🇩 Indonesia /Elections & Politics

Indonesian Lawmaker Worries Pay Cuts Will Harm Public Services

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • Indonesian legislators express concern over a 30% pay cut for civil servants and contract workers in Tidore.
  • The pay cut aims to address a 50 billion rupiah budget deficit but risks lowering public service quality.
  • Lawmakers urge central government intervention to map regional fiscal health and prevent future crises.

Lawmakers in Indonesia are sounding the alarm over a drastic 30% reduction in the income of civil servants and contract workers in Tidore. The move, implemented by the local government to avoid layoffs amid a significant budget deficit, has sparked fears of declining public service quality.

Ali Ahmad, a member of Commission II of the House of Representatives, acknowledged the fiscal challenges faced by some regions in funding contract workers. However, he argued that slashing incomes by such a large margin could demotivate employees, directly impacting the services they provide. "We understand if there is a fiscal emergency situation in some regions regarding funding sources for PPPK salaries," he stated.

We understand if there is a fiscal emergency situation in some regions regarding funding sources for PPPK salaries. However, if the solution requires cutting civil servant income by up to 30 percent, we fear it will instead trigger dissatisfaction among the apparatus, which will affect the quality of regional public services.

— Ali AhmadMember of Commission II of the House of Representatives, Ali Ahmad, expressed concern about the potential impact of the salary cuts on public services.

Thousands of contract workers in Tidore protested the policy on July 6, 2026, after the city government imposed the 30% cut to cover a budget deficit exceeding 50 billion rupiah. Ahmad warned that if this policy spreads to other regions, it could lead to a broader decline in public service standards.

We do not want to see income-cutting policies for apparatus like this become commonplace and repeated due to inadequate planning.

— Ali AhmadAli Ahmad emphasized the need for better planning to prevent future salary cut crises.

The legislator from the National Awakening Party (PKB) called for central government intervention. He proposed a detailed assessment of regional fiscal capacities to fund contract workers, focusing on areas with high fiscal risk, excessive personnel spending, low local revenue, and heavy reliance on central transfers. This, he believes, is crucial to prevent similar crises in the future.

Ahmad also urged relevant ministries and the National Civil Service Agency to develop sustainable funding schemes for contract workers. He suggested exploring options like explicitly including their salaries in general allocation funds or providing other fiscal support, especially for regions lacking adequate local budgets.

This intervention is especially needed for regions that objectively do not have adequate APBD capacity.

— Ali AhmadAli Ahmad highlighted the need for central government support for fiscally challenged regions.
DistantNews Editorial

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

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