Inp.polri.go.id - Jakarta. Minister of Home Affairs Tito Karnavian on Monday (30/3/2026)  called on local administrations to implement fiscal efficiency and creative revenue-seeking measures to prevent the mass dismissal of government contract workers (PPPK).

"Regional leaders must streamline non-essential spending, such as meeting costs and travel allowances, to prioritize payroll stability," he said following a House of Representative (DPR) session in Jakarta, as reported by antaranews.com.

The directive anticipates a 2027 regulation capping regional personnel spending at 30% of local budgets (APBD). Minister Tito warned that relying solely on central government transfers is insufficient, urging regions to revitalize local state-owned enterprises (BUMD) and maximize tax collection from the hospitality sector. 

While the law allows for temporary percentage adjustments in extreme cases, the Minister emphasized that such waivers are a last resort. He noted that the Home Ministry will deploy monitoring teams to evaluate regional creativity in managing these budgetary constraints without sacrificing the livelihoods of essential contract personnel.

(mg/inp/pr/rs)