Civil Servant Salary Realizations Frequently Increased Over 6 Years: What Are the Driving Factors?

Data from the Central Statistics Agency (BPS) shows that the realization of salaries for general government employees or civil servants (ASN) has increased frequently over the past six years.

In 2017, compensation for general government employees reached Rp698 trillion. This figure then increased by 9.88% year-on-year (yoy) to Rp767 trillion in 2018.

Entering 2020, the value of employee compensation expenditure reached Rp868 trillion. The following year it reached Rp876 trillion. Although the nominal amount increased, BPS noted that compensation growth slowed, reaching only 0.92% in 2021.

BPS stated that the slow growth in employee compensation was due to the control of employee spending to prioritize handling the Covid-19 pandemic. Despite this, the government is considered to have maintained the purchasing power of civil servants.

"The policies adopted include the provision of THR (Religious Holiday Allowance) and the 13th-month salary, which do not include performance allowance components, as well as policies for state officials and officials at certain levels," wrote BPS in its report, *Indonesia's General Government Balance Sheet 2017-2022*, published on Monday (16/10/2023).

In the latest data for 2022, compensation for general government employees increased again, reaching Rp886 trillion. This figure experienced growth of 1.25% (yoy).

BPS stated that the highest compensation growth during 2017-2022 occurred in 2018 at 9.88% (yoy). Quoting the Ministry of Finance (Kemenkeu), BPS explained that the expansion of the 13th-month salary was the main driving factor for this growth.

Meanwhile, the growth of employee compensation in 2022 was influenced by the realization of employee expenditure. This expenditure was used for the payment of salaries and allowances for ASN/TNI/Polri, including the increased 13th-month salary and THR.

"This was driven by the inclusion of a 50% performance allowance component in the payment of the 13th-month salary and THR, in accordance with Government Regulation No. 16/2022," wrote BPS.

(See also: This is the Budget Ceiling for Ministries/Agencies Approved by the DPR for Additional Civil Servant Salaries in 2024)