Government Employee Spending Budget Reaches Rp513.22 Trillion in the 2025 State Budget

The Indonesian government has allocated Rp513.22 trillion (approximately US$34.2 billion based on current exchange rates, but the exact figure depends on the date of conversion) for employee compensation in the 2024 State Budget Draft (RAPBN 2024). This amount represents an 11.36% increase from the 2024 outlook of Rp460.86 trillion. The budget for next year is also the highest in the last five years.

The budget will be allocated to employee compensation for ministries/agencies (K/L) and non-K/L. Specifically, Rp297.71 trillion will be allocated for K/L employee compensation, an increase from the 2024 outlook of Rp285.80 billion.

This budget will be used for salary payments and performance allowances for civil servants (ASN) based on the achievements of each K/L.

According to the 2025 Financial Note, the overall employee compensation budget for next year will be directed towards:

* Increasing bureaucratic effectiveness and efficiency, including through digitalization to improve productivity.
* Continuing the implementation of bureaucratic reform to create a higher-quality bureaucracy and public service.
* Improving the quality of employee compensation while maintaining the purchasing power and consumption of state apparatus.
* Accounting for the needs of new employees by implementing a zero-growth policy for non-education and non-health personnel, while promoting equitable distribution of education and health workers.

Furthermore, the Director General of Budget at the Ministry of Finance, Isa Rachmatarwata, confirmed that the RAPBN 2025 has been designed to accommodate salary increases for civil servants.

“Adjustments to salaries and so on have already been designed and are ready if (a civil servant salary increase) is implemented,” Isa stated, as reported by Katadata on Friday, August 16, 2024.

However, Isa mentioned that any salary increase or adjustment for civil servants is still awaiting the president's decision. “So, when and how much, etc., Mr. Prabowo will announce that later,” he said.