Civil servant salaries via cooperatives proposed to finance ministry

The initiative aims to give the public more options for accessing various financial services without replacing banks, including regional development banks,

Jakarta (ANTARA) - Cooperatives Minister Ferry Juliantono said a proposal to channel civil servants’ salaries through cooperatives had been submitted to the Finance Ministry.

“It has been submitted to the Finance Ministry,” Juliantono told reporters after attending a coordination meeting on the Red and White Village Cooperatives (KDKMP) program in Jakarta.

The Indonesian government was preparing a budget for the payments, he said, without providing details on the amount or the proposed disbursement mechanism.

Juliantono also did not specify when the payments might begin or which cooperatives would be involved in providing the services.

The Cooperatives Ministry said last Thursday that the government had yet to make a formal decision on a plan to expand cooperatives’ role in processing salary and pension payments for civil servants.

Cooperatives Ministry Secretary Ahmad Zabadi said the government was working to enable cooperatives to become payment partners for civil servants’ salaries and pensions, similar to the services provided by state-owned postal company Pos Indonesia and banks.

“The Cooperatives Ministry is currently working to enable cooperatives to become payment partners for retired civil servants’ pensions, as is already done by Pos and banks,” Zabadi said in a statement on Thursday.

The initiative aims to give the public more options for accessing various financial services without replacing banks, including regional development banks, Zabadi said.

The government is discussing with the finance minister the possibility of designating cooperatives as service units for civil servants’ salary and pension payments.

Indonesia had around 6.7 million state civil apparatus employees as of October 2026, including civil servants and government employees hired under work agreements, according to the National Civil Service Agency (BKN).

State pension fund Taspen said it served 9.13 million participants as of August 2026, including 3.28 million pensioners.

It operates through 46 payment partners and 16,911 service points nationwide. Under prevailing regulations, civil servants’ salary payments are governed by a regulation issued by the finance minister.

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Translator: Aria Ananda, Kuntum Khaira
Editor: M Razi Rahman
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