Indonesia to Implement Single Salary System for Civil Servants by 2026
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PublishedDec 5
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Indonesia to Implement Single Salary System for Civil Servants by 2026

AnalisaHub Editorial·December 5, 2025
Executive Summary
01

Executive Summary

Key insights and market outlook

The Indonesian government is planning to implement a single salary system for civil servants (ASN) starting in 2026 3

. The new system will consolidate various income components into a single salary structure. The Ministry of Finance (Kemenkeu) is still reviewing the proposal, which is currently being coordinated between the State Personnel Agency (BKN) and the Ministry of State Apparatus Empowerment and Bureaucratic Reform (KemenPAN-RB) 1.

Full Analysis
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Deep Dive Analysis

Indonesia Plans Single Salary System for Civil Servants by 2026

Simplification of ASN Compensation Structure

The Indonesian government is moving towards implementing a single salary system for all civil servants (ASN), consolidating multiple income components into one comprehensive salary structure 3

. This significant reform aims to simplify the current complex compensation system.

Current Progress and Stakeholder Coordination

The State Personnel Agency (BKN) is leading the coordination efforts with key stakeholders, including the Ministry of Finance (Kemenkeu) and the Ministry of State Apparatus Empowerment and Bureaucratic Reform (KemenPAN-RB) 1

3. While BKN has indicated plans to implement the system by 2026, Kemenkeu has stated that the proposal is still under review 1.

Financial Reporting Context

In related news, the Ministry of Finance has introduced new regulations through Government Regulation (PP) No. 43/2025 regarding financial reporting, aiming to enhance transparency and accountability across various sectors 2

. This regulation will require companies to submit financial reports to Kemenkeu starting from 2027, creating a more integrated financial reporting system through the Financial Reporting Single Window (FRSW) platform 2.

Implementation Challenges

While the single salary system aims to simplify compensation for civil servants, its implementation will require careful financial planning and coordination between various government agencies. The Ministry of Finance will play a crucial role in ensuring the fiscal sustainability of this new system 1

.

Original Sources

Story Info

Published
1 month ago
Read Time
12 min
Sources
3 verified

Topics Covered

Civil Service ReformFinancial RegulationPublic Sector Compensation

Key Events

1

Single Salary System Implementation Plan

2

New Financial Reporting Regulation

Timeline from 3 verified sources