Jakarta, CNBC Indonesia – Head of the Ministry of Finance’s Fiscal Policy Agency (BKF) Febrio Nathan Kacaribu confirmed that President Joko Widodo’s decision to increase the salary of state civil servants (ASN) by 8% in 2024 will not cause inflation to rise next year.
He ensured that the amount of salary increase for ASN, including civil servants, had been included in the calculation of the inflation target amount in the draft state revenue and expenditure budget or RAPBN 2024 of 2.8%. So, it will not make inflation move back above 3%.
“No, it won’t, because everything has entered at 2.8%,” said Febrio when met at the Mulia Hotel, Jakarta, Wednesday (23/8/2023).
For information, during the 2nd DPR RI Plenary Meeting regarding the general views of the factions on the 2024 RAPBN and the financial memorandum that was held yesterday, four DPR factions highlighted the proposed salary increase for ASNs that had been decided by Jokowi.
One of the representatives from the Democratic Party faction, Suhardi Duka, said that his party welcomed the proposed increase. However, Democrats hope that this policy will be made for the welfare of ASN and PNS TNI Polri, not just policies that are popular ahead of the 2024 political year.
“Entering the political year, we really hope that this policy is purely aimed at increasing the welfare of ASN and TNI-Polri, not a populist policy,” said Suhardi.
Meanwhile, the Golkar Party faction attributed the salary increase to civil servants with the government’s inflation target of 2.8%. Representative of the Golkar faction, Agung Widyantoro, said the salary increase would have an impact on the inflation rate in Indonesia.
He said his faction agreed and pushed for this salary increase. He asked the government to provide further explanation regarding the plan. “Golkar agreed and pushed for an increase in ASN salaries, while at the same time asking for a more comprehensive explanation regarding the government’s steps in anticipating the risk of deviation from achieving the inflation target,” he said.
Meanwhile, the PAN faction stated that it appreciated the salary increase for ASN, TNI-Polri by 8% and the pension salary increase by 12%. Representative of the PAN faction, Eko Hendro Purnomo, said that his faction hopes that this increase will be carried out in line with the transformation of the bureaucracy.
“PAN reminded that the increase in personnel spending is in line with the government’s efforts to maintain people’s purchasing power, as well as carry out an effective bureaucratic transformation,” he said.
The Gerindra faction also touched on Jokowi’s proposed salary increase for civil servants. Representative of the Gerindra faction, Wihadi Wiyanto, said that his faction appreciates the government’s commitment. He hopes this policy can accelerate national economic growth.”
“We also appreciate the government’s commitment to increasing the salaries of central and regional civil servants, as well as the TNI-Polri by 8% and retirees by 12%,” he said.
Jokowi Decides Honorary Fate at the End of 2023