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View all search resultsBudget cuts leave regions struggling to pay contract employees
In Lhokseumawe, Aceh, around 3,000 government contract employees have yet to receive their July salaries or annual 13th-month salary payments, while also facing uncertainty over whether their contracts will be renewed.
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Civil servants attend a ceremony to mark National Education Day on May 2, 2023, at Tegar Beriman Square in Cibinong, Bogor regency, West Java. (Antara/Yulius Satria Wijaya)
T
he central government’s austerity-driven cuts to regional fund transfers have left local administrations struggling to pay thousands of contract government workers, triggering growing anger across the country.
The financial strain boiled over on Monday during morning assembly at the Tidore Islands mayoralty office in North Maluku, after the local administration announced plans to furlough around 2,000 contract workers.
The announcement sparked unrest as dozens of workers protested, with some setting fires and pushing against security personnel while attempting to force their way into the mayor’s office.
The situation was eventually brought under control after fellow employees intervened, urging their colleagues to remain calm and helping to defuse tensions.
Following the unrest, Tidore Islands Mayor Muhammad Sinen reversed the decision, pledging not to furlough any contract government workers. Instead, the administration will reduce allowances for all civil servants, contract workers and part-time contract employees in the regency by 30 percent.
"We are facing a budget deficit of Rp 50 billion [US$ 276,196] this year. Even with the 30 percent allowance cut, we will only save around Rp 20 billion. There is no other solution. We have to endure this situation; otherwise, we would have to furlough workers," Muhammad said as quoted by Kompas.com.
Muhammad also vowed to resign if the local government was ultimately forced to furlough contract workers.
