The Single Salary Scheme Will Fertilize The PGPS Phenomenon In The ASN Environment

Illustration of a single salary scheme can make ASN's performance decrease. (Ist)

JAKARTA Economic observer of the Institute for Development of Economics and Finance (INDEF), Esther Sri Astuti assessed that the single salary scheme has the potential to make state civil servants (ASN) lazy and at the same time fertilize the phenomenon of PGPS aka Small-Income Blocks.

'ASN in Indonesia is used to receiving additional income from various performance-based allowances. If everything is merged into one, it could be that ASN who are diligent and active will lose their enthusiasm because their income no longer reflects their business. This is what PGPS calls. That is, both diligent and lazy, the income remains the same," he explained, Sunday, July 6, 2025.

Previously, the government planned to impose a single salary scheme for ASN in 2025. This scheme has been tested in a number of ministries and institutions, such as the Ministry of Home Affairs, Ministry of Religion, and the Corruption Eradication Commission (KPK). In this scheme, the basic salary and all ASN allowances are combined into one package up to Rp11 million per month.

According to Esther, the single salary scheme also has the potential to increase the country's fiscal burden. Because, when a large and fixed amount of salary is set, employee spending as a component of routine government spending will automatically increase.

"This means that whether the ASN works or not, the government will continue to issue the same amount. In the future, there will also be demands for a salary increase in line with inflation. This could increase fiscal pressure," he added.

He suggested that if the single salary scheme was implemented, the government should prepare a key performance indicator or KPI as a clear parameter to measure the performance of ASN. Thus, if an ASN KPI is not achieved, the government must impose strict sanctions such as reducing groups or reducing rights.

The same thing is also applied in many developed countries. High salaries can indeed make ASN calmer but can also cause budget waste. So, the solution is back to performance measurements. If ASN receives a large salary, then the performance achievement must also be clear. If it is not achieved, yes, it must be downgraded," concluded Esther.