East Nusa Tenggara (NTT) Governor Melki Laka Lena emphasized that he was still looking for solutions with the central government regarding the controversy of government employees with work agreements (PPPK) threatened to be terminated due to the policy of limiting employee spending to a maximum of 30 percent of the APBD.
"We must find a solution together. There should not be any employees, including PPPK, who are laid off," he said in a coordination meeting on regional financial management with the central government and all district/city governments in NTT in Kupang, Wednesday, quoted by Antara.
He said that the regional fiscal condition in NTT still faces serious challenges, where the average employee spending is above the provisions set out in Law Number 1 of 2022 concerning the Financial Relationship between the Central Government and Regional Governments.
Based on data, the average spending of employees in NTT reaches more than 50 percent of the total APBD, far exceeding the maximum limit of 30 percent set by the central government.
According to the Governor, the situation cannot be resolved with instant steps such as reducing manpower, but rather through a more adaptive and comprehensive policy.
He also emphasized the importance of accelerating policy certainty from the central government, considering that the region must immediately prepare the 2027 budget plan.
Governor Melki stated that his party together with all regional heads in NTT would continue to coordinate with the central government to find the best way out without sacrificing the welfare of the apparatus.
"We are optimistic that there will be more flexible policies that are in favor of regional conditions," he said.
Meanwhile, the Director General of Regional Finance of the Ministry of Home Affairs, Agus Fatoni, explained that the central government opened a room for adjustment for regions that were not able to meet the limit on employee spending.
"Adjustment can be made through a ministerial decision after coordinating with the Ministry of Finance and the Ministry of PAN-RB," he said.
During the forum, the regional heads of NTT also conveyed aspirations for the central government to provide policy relaxation by considering the characteristics of the archipelago, lagging, leading, and outermost regions (3T), as well as fiscal capacity limitations.
The central government is also encouraging steps to increase efficiency in non-priority spending and optimizing local original revenues (PAD) as a medium-term solution to reduce the ratio of employee spending.
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