President Joko Widodo (Jokowi) stated that the salaries of central and regional civil servants (ASN), including the Indonesian National Armed Forces (TNI) and the Indonesian National Police (Polri), will increase by 8% in 2024. He made this announcement in his introductory speech for the 2024 State Budget (RAPBN) and Financial Note at the DPR/MPR Building on Wednesday, August 16, 2023.
Not only ASN, but the draft State Budget also proposes an increase in pensions for civil servants (PNS) next year. This salary increase is the first for PNS and pensioners since the last increase in 2019.
"The 2024 RAPBN proposes an improvement in income in the form of a salary increase for Central and Regional ASN, TNI, and Polri by 8%, and an increase for pensioners by 12%," Jokowi said, as quoted by Katadata.co.id, Wednesday, August 16, 2023.
Jokowi hopes that this salary increase for PNS and pensioners will improve performance and accelerate economic transformation and national development. He believes that bureaucratic reform must also be continuously strengthened to ensure the effective implementation of transformation.
Currently, the amount of the basic salary for PNS is regulated in Government Regulation (PP) Number 15 of 2019. Under this regulation, the lowest basic salary is Rp1.56 million, while the highest is Rp5.90 million.
In addition, PNS also receive various allowances, ranging from spouse allowances, child allowances, rice allowances, to performance allowances.
The proposal for a PNS salary increase has been under consideration for the past few months.
Previously, the Minister of Administrative and Bureaucratic Reform, Azwar Anas, proposed an increase in the basic salary of PNS. He argued that the component of civil servants' salaries, which has been supported by performance allowances (tukin), is unbalanced.
Anas also reworked the formula for providing tukin for PNS in the proposal for the salary increase.
"Therefore, we propose a slight salary increase; this is currently being discussed with the Minister of Finance," said Azwar at the 2023 Budget Implementation National Coordination Meeting on Wednesday, May 17, 2023.