The Government Disburses Rp20.5 Trillion in Aid to 490 Regions to Pay ASN and PPPK Salaries

JAKARTA - The government through the Ministry of Finance will immediately disburse assistance of Rp. 20.5 trillion to 490 local governments as a step to maintain regional financial stability while ensuring the payment of salaries for the Regional Civil Servants (ASN) and Government Employees with Work Agreements (PPPK) can be carried out on time.

Minister of Finance Purbaya Yudhi Sadewa said that the policy was a direct order from President Prabowo Subianto who paid great attention to the fiscal conditions of a number of local governments.

He added that the central government had also listened to various aspirations from regions that had difficulties in meeting the obligation to pay salaries to employees.

"President Prabowo understands the financial conditions of the regions that the local government is experiencing. The central government also listens to the aspirations of local governments that are having difficulty in paying their employees' salaries," he said in his statement, quoted Thursday, August 6.

Purbaya said that as a follow-up to the President's instructions, the government decided to provide financial assistance to local governments so that the fiscal condition of the region is maintained and public services are not disrupted.

"As a form of great attention from the President to the financial condition of the local government, the President has given instructions to provide assistance from the Central Government to the local government," he said.

He explained that the assistance was targeted to be distributed no later than next week.

Currently, the administrative process for distribution is being completed so that the funds can be immediately received by the local government.

"This assistance will be disbursed immediately, at the latest next week. With this assistance, it is hoped that the local government can make salary payments for ASN Regional Civil Servants and P3K employees in the local government," he explained.

Purbaya added that the total assistance prepared by the government reached IDR 20.5 trillion and would be distributed to 490 local governments, but the amount of assistance received by each region was calculated based on actual needs and fiscal capacity.

"Rp. 20.5 trillion for 490 local governments. Currently, the administration is still processing it. We calculate based on each region's budget and what the shortfall is. Everything can be detected, so that the assistance provided is truly sufficient for the needs of the region," said the Minister of Finance.

According to him, this approach is carried out so that the central government's assistance is targeted and able to strengthen the financial condition of the region, so that the local government is expected to carry out its fiscal obligations optimally without facing salary payment problems as occurred in a number of regions previously.

Purbaya conveyed that through this policy, the government confirmed its commitment to continue to maintain synergy between the central government and local governments in strengthening the management of state finances.

"This fiscal support is expected to increase regional financial stability, maintain the sustainability of public services, and provide certainty for regional ASN and PPPK in receiving their rights in a timely manner," he concluded.