Indonesian Government Weighs Civil Servant Salary Increase for 2026

Financial Conditions and State Revenue

The Indonesian government is cautiously considering a potential salary increase for civil servants (ASN) in 2026, with Finance Minister Purbaya Yudhi Sadewa indicating that the decision will depend on the country's financial condition in early 2026 ²

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Source 4

https://aktual.kontan.co.id/news/gaji-asn-2026-naik-menkeu-tunggu-penerimaan-negara

. The government is maintaining a strong cash position, with approximately Rp 399 trillion in reserves as of end-2025, partially held at Bank Indonesia to meet January 2026 expenditure needs ¹

Source 1

https://nasional.kontan.co.id/news/purbaya-ungkap-ada-dana-rp-399-triliun-untuk-kebutuhan-belanja-januari-2026

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Economic Policy Synchronization

The decision to potentially increase ASN salaries is part of a broader economic management strategy. The government is synchronizing fiscal and monetary policies with Bank Indonesia to maintain liquidity in the financial system. Purbaya noted that this coordination has made liquidity management more flexible ¹

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Market and Economic Outlook

The Indonesian Stock Exchange (IHSG) showed positive momentum at the end of 2025, with analysts suggesting potential further growth in 2026. Finance Minister Purbaya expressed optimism that the IHSG could reach 10,000 points by end-2026, driven by improved policy coordination and stronger economic fundamentals ⁵

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Employment and Economic Growth Targets

The government has set ambitious targets for 2026, including creating 3-4 million new jobs and achieving 5.4% economic growth. However, economists have questioned the realism of these targets, suggesting that the assumed employment elasticity of 555,000-740,000 jobs per 1% GDP growth may be overly optimistic ⁷

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