TRENGGALEK – The issue of PPPK salary adjustments has emerged in Trenggalek as local lawmakers and the regional government search for ways to meet Indonesia’s new regional budget regulations without cutting public sector jobs.

The debate follows the implementation of Law No. 1 of 2022 on Financial Relations Between the Central and Regional Governments. The regulation requires regional administrations to limit employee spending to a maximum of 30 percent of the regional budget starting in 2027.

Trenggalek currently allocates around 42 percent of its regional budget to employee spending. The figure increased sharply after the region recruited about 2,300 new government contract workers, known as PPPK employees.

Chairman of the Trenggalek Regional House of Representatives, Doding Rahmadi, said local authorities continue to seek the best solution to reduce spending without sacrificing public services.

“Because we recently added around 2,300 PPPK workers, our employee spending composition remains high. We are looking for a formula to reduce it to 30 percent,” Doding said.

According to him, Trenggalek now employs more than 10,000 government workers. The workforce includes 5,022 civil servants and 5,124 PPPK employees.

Doding explained that limited regional fiscal capacity has made the adjustment process more challenging. At the same time, the government must also increase infrastructure spending to 40 percent in line with national regulations.

Lawmakers and regional officials are now reviewing several budget adjustment schemes. They aim to balance financial efficiency with stable public services.

Doding stressed that the government does not want to terminate PPPK contracts. He said the workers still play an important role in supporting education, healthcare, and other public services across the regency.

“If absolutely necessary, it could happen, but we hope it will not. We do not want any PPPK reductions,” he said.

Despite that stance, officials admit they still need to make financial adjustments before the 2027 deadline arrives. One option under discussion involves adjusting PPPK salaries instead of reducing the number of workers.

“The most realistic option may involve salary adjustments, but we are still studying everything carefully,” Doding explained.

He added that the government wants to ensure compliance with the regulation while maintaining public service quality and protecting employment opportunities for PPPK staff.

The discussion reflects broader concerns among regional governments across Indonesia. Many regions now face growing pressure to balance employee spending, infrastructure development, and long-term fiscal sustainability under the new budget framework.