Thekabarnews.com—The North Maluku provincial administration has reduced additional income allowances for civil servants (ASN) and government contract employees. The provincial administration took this action to maintain payments through December 2026 amid mounting pressure on the regional budget.

Governor Sherly Tjoanda explained the policy during a joint civil servant assembly at the governor’s office in Sofifi on Monday, July 27.

She disclosed the province’s financial position to help employees understand why the government had expanded its allowance-reduction measures.

The original 2026 regional budget (APBD) only provided sufficient funding for the additional employee income allowance (TPP) through August.

Governor Sherly said the province needed another Rp263 billion to continue paying the allowance from September to December.

“This is the best option we can maximize to ensure that all ASN and PPPK allowances continue to be paid smoothly through December,” Sherly said.

Under the revised arrangement, rank-and-file civil servants and government contract employees (PPPK) will receive a 10% reduction from July through December 2026.

Structural officials in Echelon I, II, III and IV will face a 20-percent reduction covering January through December. The provincial administration had already introduced the cut for structural officials in March while initially protecting staff-level employees.

The expanded reductions should save approximately Rp67 billion. The province’s revenue agency (Bapenda) must generate an additional Rp51 billion in locally sourced revenue to cover the remaining gap.

The calculation begins with the Rp263 billion funding requirement. The provincial administration says it can freely allocate only about Rp145 billion from the previous year’s remaining budget balance to the revised budget.

The figure is after accounting for earmarked transfers, cigarette-tax liabilities to regencies and cities, and unpaid capital-expenditure obligations.

North Maluku’s official 2025 budget-accountability report placed SiLPA—the surplus remaining after annual budget calculations—at Rp349.44 billion.

The province also retained an unqualified audit opinion from the Supreme Audit Agency (BPK), according to the North Maluku provincial administration.

A large SILPA does not mean the provincial government can spend the entire amount on TPP. This limitation is because part of the balance remains tied to specific obligations.

Fiscal pressure intensified after the central government reduced North Maluku’s regional transfers. The province also assumed responsibility for salaries and allowances covering approximately 4,200 PPPK employees.

The 2026 North Maluku APBD totals Rp2.85 trillion. This includes projected locally generated revenue of Rp1.17 trillion, according to the province’s official budget regulation.

Sherly said personnel expenditure had reached about Rp1.4 trillion—nearly half of the total budget. The provincial administration needs this funding to cover personnel costs for more than 11,300 employees.

The high payroll share limits funding available for roads, agriculture, fisheries and other public services.

Sherly apologized to affected employees but said the adjustment would prevent TPP payments from stopping before the end of the year.

She also urged provincial agencies to support revenue collection and maintain public services despite the reduction.