Indonesian Government Explores PPPK to PNS Status Conversion and Salary Hike

Background on Proposed Changes

The Indonesian government is evaluating two major proposals affecting civil servants: converting PPPK (Pegawai Pemerintah dengan Perjanjian Kerja) to PNS (Pegawai Negeri Sipil) status and potentially increasing civil servant salaries in 2026. These proposals are part of ongoing efforts to improve the welfare of civil servants and optimize government human resources ¹

Key Considerations for Status Conversion

Minister of State Apparatus Utilization and Bureaucratic Reform (PANRB) Rini Widyantini addressed the PPPK to PNS conversion proposal, stating that any such change must be carefully evaluated, particularly regarding its fiscal implications. The minister highlighted that becoming a PNS involves a long-term commitment of over 30 years of service, necessitating thorough financial planning ¹

Salary Increase Discussions

Regarding the potential salary increase for civil servants in 2026, Rini mentioned that while there is support for improving ASN welfare, the decision must consider the government's fiscal readiness. The salary hike was included in the updated 2025 Government Work Plan (RKP) through Presidential Regulation No. 79/2025, signed by President Prabowo Subianto on June 30, 2025 ²

Implementation Challenges

The ministry is currently assessing the feasibility of both proposals. Rini emphasized that any policy changes, including status conversion or salary adjustments, must align with existing laws and regulations. The government is also working to improve the overall welfare system for all civil servants, regardless of their status as PNS or PPPK ¹