Indonesian Government Explores Civil Servant Salary Increase for 2026

Proposal Under Review with Ministry of Finance

The Indonesian government is actively considering a salary increase for civil servants (PNS) and government employees (PPPK) in 2026. Minister of Pendayagunaan Aparatur Negara dan Reformasi Birokrasi (PANRB), Rini Widyantini, confirmed that the proposal is currently under joint review with the Ministry of Finance. The plan has been formally documented in the Presidential Regulation No. 79/2025 concerning the Update of the Government Work Plan (RKP) for 2025, signaling serious intent behind the potential salary adjustment.

Rationale and Potential Impact

The proposed salary increase aims to enhance the welfare of civil servants, who play a crucial role in the government's service delivery and administrative functions. An increase in their salaries could have a positive ripple effect on the economy, as civil servants represent a significant portion of the workforce and consumers. Improved compensation is expected to boost their purchasing power, potentially stimulating economic activity across various sectors.

Next Steps and Decision-Making Process

While specific details about the magnitude of the proposed salary increase remain under wraps, the inclusion of this measure in the Presidential Regulation suggests that it is being given serious consideration. The final decision will likely result from a collaborative effort between the Ministry of PANRB and the Ministry of Finance, taking into account fiscal implications and broader economic factors. The government's careful deliberation reflects its commitment to balancing the welfare of its employees with overall fiscal responsibility.