Indonesian Government Explores Civil Servant Salary Increase for 2026

Discussions Between Key Ministers

The Indonesian government is actively considering a salary increase for civil servants in 2026, as revealed during a meeting between Minister of Pendayagunaan Aparatur Negara dan Reformasi Birokrasi (PAN-RB) Rini Widyantini and Finance Minister Purbaya Yudhi Sadewa. The discussion, which took place at the Ministry of Finance in Jakarta on December 29, 2025, highlighted the government's focus on enhancing public sector welfare. Rini Widyantini confirmed that the salary increase was among several pressing matters on the agenda, stating, "(Pembahasan) macam-macam lah banyak PR-nya saya sama pak menteri. (Termasuk usulan kenaikan gaji ASN 2026) iya salah satunya."

Presidential Regulation Supports the Plan

The proposed salary increase is backed by Presidential Regulation No. 79/2025, signed by President Prabowo on June 30, 2025. This regulation outlines the government's plan to update the 2025 Government Work Plan (RKP) and includes provisions for salary adjustments for civil servants, TNI/Polri personnel, and state officials. The regulation serves as a critical framework for the government's fiscal and welfare policies in the coming year.

Implications for the Economy and Public Sector

The potential salary increase is expected to have significant implications for both the public sector and the broader economy. On one hand, it could lead to improved welfare for civil servants and their families, potentially boosting morale and productivity within the public sector. On the other hand, the increased government expenditure could stimulate economic growth by injecting more money into the economy through higher disposable incomes among government employees.

Next Steps

While the proposal is currently under discussion, its implementation will depend on various factors, including budget allocations and economic conditions. The government will need to balance the benefits of increased public sector wages against other fiscal priorities and economic considerations. As the plan progresses, further details are likely to emerge regarding the scale and timing of the salary adjustments.