DPR Proposes Performance-Based Regional Head Salaries and Fiscal Capacity

The inauguration of the regional head seterantak at the Merdeka Palace, Jakarta (ANTARA)

Commission II of the DPR proposed changes to the regional head remuneration system by prioritizing the performance and fiscal capacity of each region. The scheme is considered fairer than implementing the same amount of income in all regions.

Deputy Chairman of Commission II of the House of Representatives, Bahtra Banong, said that regional heads have not only received basic salaries and allowances, but also received operational support costs (BPO). However, the amount of BPO depends on the fiscal capacity and the respective local original income (PAD).

In addition, regional heads also receive tax incentives with varying values. According to Bahtra, there is a considerable gap between areas with high PAD, such as Jakarta, and areas with lower fiscal capacity.

"Actually, besides salaries and allowances, regional heads also receive operational support costs (BPO). However, the amount depends on the fiscal capacity and PAD of each region," said Bahtra.

Therefore, Commission II of the DPR encourages the government to develop a new remuneration design that is more proportional by considering the financial capacity of the region.

"Therefore, we want to improve the remuneration design to be more fair and proportional. In addition, the remuneration system must also be performance-based," he said.

Bahtra emphasized that remuneration adjustments should not be made uniformly. According to him, equalization has the potential to reduce the motivation of regional heads to increase PAD, innovate, and improve services to the community.

He assessed that the fiscal capacity of the regions should be one of the main indicators in determining the amount of remuneration so that a sense of inter-regional justice is created.

In addition, the remuneration must also be linked to the performance of regional heads. Indicators such as the quality of public services, the success of reducing stunting rates, to poverty alleviation are considered suitable as benchmarks in the scheme.

"Public services, stunting handling, poverty alleviation, and various other indicators must be a benchmark," he said.

Bahtra also reminded that the regulation regarding the remuneration of regional heads had not undergone changes for almost 26 years, while the responsibilities of regional heads continued to increase.

"I also agree that for 26 years there has been no change in the remuneration of regional heads, while the workload continues to increase. Therefore, a new design needs to be thought of so that regional heads get a decent income and are not encouraged to look for other sources of income," he said.

However, he emphasized that improving remuneration must go hand in hand with improving the political financing system. According to him, the high cost of politics also needs to be resolved so that efforts to improve local government governance can be carried out comprehensively.

"However, the problem of high political costs must also be corrected. We must solve the problem from upstream to downstream," concluded Bahtra.