Finance Minister Sri Mulyani Indrawati said the government would allocate funds from the 2019 state budget to up civil servants’ salaries, nipping in the bud widespread speculation that the increase would be implemented this year.

“There is no statement on [this year’s] salary increase. It will be included in the 2019 state budget bill,” Sri Mulyani said in Jakarta on Tuesday, as reported by tempo.co.

Previously, State Employment Agency spokesman Mohammad Ridwan said the agency was preparing a concept for the increase in 2019, considering the fact that there was no increase in the last two years.

The salary increase proposal came about because the drafting of the government regulation on salaries, allowances and facilities for civil servants has not yet been completed. It will replace Government Regulation No. 7/1977 on civil servant salaries.   

“The proposal also includes the budget analysis and its impact on fiscal conditions. It will be discussed at an inter-institution forum,” Ridwan said, adding that if the proposal was agreed upon it would be included in the 2019 state budget bill.

Meanwhile, the agency’s civil servant compensation director, Aswin Eka Adhi, said the proposal’s acceptance or not depended on the country’s financial capability.

He stressed that the government did not allocate funds for a salary increase this year, but it was preparing the Idul Fitri bonus -- an amount equal to a civil servant’s basic salary. (bbn)