Antara News·Indonesia·Tuesday, August 18, 2026 at 04:12 PM

PPPK teacher policy won't threaten fiscal health: Finance Minister

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..these steps are being taken without endangering our fiscal condition in 2027, which will remain at a 2.4 percent deficit,

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has assured that the transfer of employment status for government employees under work agreements (PPPK) working as teachers to central government employee status will not disrupt fiscal sustainability.

He said the ministry has prepared a budget for the policy.

"So, we have calculated everything, and this can be done without endangering fiscal sustainability," Sadewa said at a press conference at the Parliament Complex here on Tuesday.

He also assured that under the policy, the deficit target in the 2027 State Budget Draft (RAPBN) will remain at 2.40 percent of Gross Domestic Product (GDP), or Rp671.2 trillion.

"Based on the results of the meeting earlier, we have also carried out simulations for this year's budget and subsequent years' budgets. So, these steps are being taken without endangering our fiscal condition in 2027, which will remain at a 2.4 percent deficit," he explained.

Meanwhile, State Secretary Minister Prasetyo Hadi explained that the policy on the transfer of PPPK status was an agreement reached at a meeting between government officials and the House of Representatives (DPR).

"We agreed together that employment status will be transferred to become central employees or central government employees," Hadi said.

In this regard, he said teachers with part-time PPPK status will be appointed as full-time PPPK employees. Teachers who currently hold full-time PPPK status will then have the opportunity to take part in a selection process to become civil servants (PNS) in 2027.

Hadi said the government continues to synchronize data on teacher employment across the various statuses.

He added that resolving the teacher employment issue cannot be done in isolation, as various aspects must be taken into account.

Besides the DPR, he said, the central government also frequently receives input from teacher associations.

"We are committed to continuing to seek the fastest possible solution," Hadi said.

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