Government prepares revision of regional leaders' pay rules after 26 years
The new scheme will tie financial benefits to performance and PAD, then be reviewed by a government team with Kemenkeu and Bappenas.
The government is preparing a revision of the financial entitlement rules for regional heads and deputy regional heads, which still refer to PP Nomor 109 Tahun 2000. Home Affairs Minister Tito Karnavian said the 26-year-old regulation no longer reflects current economic conditions and operating costs. After a meeting with Komisi II DPR at the Parliamentary Complex in Jakarta on Thursday, Tito said the government will form a team to discuss the changes with Kementerian Keuangan and Bappenas. He said the adjustment will not apply automatically, but will be linked to regional heads' performance and local fiscal capacity through Pendapatan Asli Daerah. The Operational Support Cost component will also be reviewed. Komisi II DPR Chairman Rifqinizamy Karsayuda asked that the new formula include reward and sanction mechanisms so it is more proportional and helps curb abuse of authority.