Menkop Budi Arie Lays Off 1,235 Field Cooperative Extension Officers Imbas Efficiency
Minister of Cooperatives (Menkop) Budi Arie Setiadi revealed that there will be Termination of Work Relations (PHK) on 1,235 Field Cooperative Extension Officers (PPKL) due to budget efficiency at the Ministry of Cooperatives.
Budi said this was because the PPLK was included in the procurement of goods and services so that it was directly affected by the efficiency of the Ministry of Cooperatives.
"We will formulate 1235 PPLK later because it is included in the budget for goods and services. It must be included so that it will definitely be affected," Budi said in a Working Meeting with Commission VI DPR RI, Wednesday, February 12.
Previously, this was asked by a member of Commission VI of the House of Representatives from the PDIP faction, Rieke Diah Pitaloka, regarding the Ministry of Cooperatives' budget efficiency plan in accordance with the legal reference contained in the Minister of Finance Letter Number S-37/MK.02/2025 concerning the Efficiency of K/L Expenditures.
Rieke said, identification of the efiscence plan is needed so that layoffs that occur in other institutions such as RRI and TVRI do not occur.
"I want to ask whether the identification is in accordance with the legal basis of the minister's letter Number 5/2025 where the identification of the efficiency plan includes operational spending. We don't want to hear that it happened in other commission partners and then layoffs occurred, such as RRI, TVRI, and there must be certainty that efficiency is in accordance with the minister's letter, including personnel spending and social assistance spending," Rieke continued.
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It is known that the Ministry of Cooperatives' previous budget was allocated Rp473 billion to Rp317 billion after an efficiency of Rp155 billion.
Budi detailed that efficiency is carried out in official travel expenditures, meeting activities expenditures, ATK spending, consignment spending and social media procurement of abrang and services as well as contractual.
"So, the Ministry of Cooperatives' total ceiling from Rp473 billion to Rp375 billion," said Budi.