Indonesian regional government guarantees jobs for 2,298 contract workers until 2026

The Bengkulu Utara regional government in Indonesia has assured 2,298 part-time contract workers that their jobs are secure until the end of 2026. This guarantee comes amid local government budget efficiencies aimed at maintaining fiscal stability.

Carles Jhonson, head of the Regional Finance and Assets Agency, stated that no PPPK workers will be laid off. The regional government has budgeted Rp12 billion from the national budget's goods and services allocation to cover the salaries of these 2,298 workers through December 2026. Jhonson emphasized that their rights are protected and no dismissals are planned for this year.

The need for budget efficiency stems from a projected 10.7% decrease in central government transfers to Bengkulu Utara in 2026, amounting to a reduction of Rp119 billion to Rp129 billion. This fiscal constraint necessitates careful management to avoid disrupting public services.

However, the long-term employment security for these workers beyond 2026 remains uncertain. The regional government is awaiting the central government's budget allocations for the following year, expected in September 2026. They also await technical guidance on whether the salaries for both part-time and full-time contract workers will be funded by the national budget or regional budgets.

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Although we are currently implementing budget efficiencies, we ensure that no part-time PPPK will be laid off until the end of 2026.