New Policy Plans, Regional Government Asked To Participate The Payment Responsibility Of Retirement Of Civil Servants

JAKARTA - The government through the Ministry of Finance (Kemenkeu) is said to be implementing a new policy by requiring local governments (Pemda) to participate in covering the burden of paying retired civil servants or civil servants.

This was stated by the Director General of Budget of the Ministry of Finance Isa Rachmatawarta. According to him, this step is considered to have the opportunity to reduce pressure on the ability of the state budget. The reason is, so far the payment of retired civil servants salaries is fully borne by fiscal instruments.

PNS in the regions is appointed by the regional government, but when they retire is borne by the center. Actually this is not fair," he said when giving a statement to the media at his office, Monday, August 29.

Isa added, in the government's discourse which is currently being discussed, the state apparatus payroll scheme that has retired will be borne by each local government that appoints them. This refers to the location and work units of the civil servants.

"Because the regional civil servants who take advantage of their services are local governments, they must also bear the local government," he said.

Isa detailed, based on his records, the long-term number of government pension programs was Rp2,929 trillion. This figure consists of Rp935.67 trillion of the central government and Rp1,994 trillion of local governments.

Meanwhile, the realization value of pension payments borne by the central government tends to increase, namely Rp90 trillion in 2018, Rp99.7 trillion in 2019, Rp104.9 trillion in 2020, Rp112.2 trillion in 2021, and Rp119 trillion in 2022.

The number is getting bigger every year. Why is that? Because many more retirees and also a longer lifespan, it will be greater," he asserted.