August 12, 2026 | 04:15 pm
TEMPO.CO, Jakarta - As he read from his mobile device, Finance Minister Purbaya Yudhi Sadewa announced plans to disburse assistance to regional governments. The aid will take the form of Rp20.5 trillion (around US$1.15 billion) in funding to 497 regions to cover the salaries of civil servants, including government employees under employment agreements (PPPK).
The allocation is a response to complaints from regional heads about shortfalls in their personnel budgets. On Sunday, July 5, 2026, the Home Affairs Ministry issued a circular asking local governments to provide data on those unable to meet their civil service payroll obligations. The government then allocated part of the State General Treasury budget for the assistance. The assistance, however, has yet to address all of the regions' concerns.
After meeting with Dony Oskaria, Chief of the State-Owned Enterprises Management Agency, at the Finance Ministry building in Central Jakarta on Wednesday, August 5, 2026, Purbaya spoke with Tempo reporter Han Revanda Putra and several other journalists.
When will the assistance to local governments be disbursed?
We hope to disburse it by the end of this week, or no later than next week, because there is a process to go through. With this assistance, we hope local governments will be able to pay the salaries of civil servants, including PPPK employees. That should improve their financial condition.
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