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View all search resultsHome Minister urges budget cuts, not layoffs
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Home Minister Tito Karnavian (left), who also chairs the task force for post-disaster rehabilitation and reconstruction in Sumatra, leads a coordination and evaluation meeting on recovery efforts on June 9 following hydrometeorological disasters in Banda Aceh. Attended by 23 regents and mayors from across Aceh, the meeting focused on accelerating recovery, strengthening coordination and improving regional disaster preparedness and resilience. (Antara/Irwansyah Putra)
T
he Home Ministry has instructed regional administrations not to furlough government contract employees (PPPK) despite mounting fiscal pressure, urging them instead to slash nonessential spending and reprioritize budgets before seeking central government assistance.
Home Minister Tito Karnavian ensured that the government would help regions struggling to pay employees under the PPPK scheme, but only after they had exhausted savings from budget efficiencies, including cuts to travel, meetings and catering.
“We will identify regions that truly have limited fiscal capacity. But first, we ask the regions to implement budget efficiency measures,” he told journalists at the Senayan legislative complex in Central Jakarta on Thursday.
Tito urged regional leaders to thoroughly review their budgets before concluding they lacked fiscal capacity to pay PPPK salaries.
If some regions remain under financial strain after implementing the cuts, the ministry will assess whether they are eligible to receive an undisbursed revenue-sharing fund (DBH).
“If they are, we will propose to the Finance Minister that those regions be prioritized for the DBH disbursement so they can pay PPPK salaries as soon as possible,” the minister added, as quoted by Kompas.com.
Read also: Budget cuts leave regions struggling to pay contract employees
