“Bloated Bureaucracies”; 291 Regional Governments Spend more than 60% on Budgets on Civil Service Costs

Bloated Bureaucracies: 291 Regional Governments Spend more than 60% of their Budgets on Civil Service Costs

The financial situation of Indonesia’s sub-national governments is becoming more and more critical and worrying.   Their wasteful spending practices—using up more than half their budgets just to meet civil service costs—is bringing them to the brink of bankruptcy. The blow out in civil service costs has been due to: firstly, central government decisions between 2007 and 2011 to grant civil servants periodic salary increases of between 5% and 15% plus end-of-year bonuses of one month’s extra salary; second, allowing regions to continue to recruit civil servants irrespective of local fiscal resources; and, third, excessive proliferation of governmental agencies in kabupatens (districts) and cities that have placed increased pressure on local budgets.

It is projected that 291 regions will spend more than 60% of their 2012 budgets on civil service costs.  Astonishingly, this represents a 135% increase over the corresponding figure for 2011 (124 regions).  Of the 291 regions concerned, 11 (both kabupatens and cities) are projected to spend 70% or more of their budgets on civil service costs (see table below).  The biggest spender will be the City of Langsa in Aceh Province with a spending level of 76.7%.

This situation indicates that the purpose of sub-national governments arising from  regional autonomy—the delivery of quality public services to local communities—will never be achieved because the money left over for that purpose amounts to just 9-14% of total local budgets.  And, of course, it will be ordinary people who will, yet again, be victimized.

To save sub-national governments from bankruptcy, FITRA urges an immediate policy change taking the following into account:

  1. Politicization of bureaucracies should cease.  The fact that regional civil services are beholden to local heads of government is encouraging the practice of recruitment of civil servants irrespective of actual personnel needs and local budgetary constraints.  We must not forget that local heads of government are politicians for whom civil service recruitment is a political tool to be used to “look after” supporters at the expense of the public purse.  To overcome this sort of problem, relevant provisions of Law No. 32/2004 on regional autonomy should be revised forthwith.
  2. Civil service costs should be removed as a basic component of the General Allocation Fund (DAU).  The key here is that Law No. 33/2004 on fiscal balance between the Center and regions should be revised as a matter of urgency.  That process should introduce a new DAU formula that provides incentives for regions to increase local revenue and reduce civil service costs.
  3. Limits should be placed on numbers of governmental agencies operating at kabupaten and city level.  The central government, via the Ministries of Home Affairs and Finance, should act quickly to place ceilings on the number of government agencies that can be set up at sub-national government level. This should be done on the understanding that one agency can in fact take on several responsibilities.  What is happening now is that the number of agencies being set up by kabupatens is the same as the number of tasks to be carried out.  This practice is resulting in ever larger numbers of government personnel each year.
  4. The moratorium on local civil service recruitment should continue.  The moratorium, imposed in 2011, should continue until 2014.  Such a step would rein in the rate of growth of local civil services.  Following the 2014 elections, government should come up with a precise ratio for calculating the size of regional civil services.  The standard ratio should not be based solely on population, but also on local geographical factors and fiscal capacity.

Jakarta, 09 April 2012

Hadi Prayitno                                                                                                                                                                                         Head, Network Development Division                                                                                                                                      Seknas FITRA, Jakarta                                                                                                                                                                    081 949653162                                                                                                                                        hadi@seknasfitra.org  Attachment:

11 Kabupatens/Cities Spending 70% or more on Civil Service Costs




% of Budget Spent on Civil Service Costs


City of Langsa Aceh



Kab. Kuningan West Java



City of Ambon Maluku



Kab. Ngawi East Java



Kab. Bantul Yogyakarta



Kab. Bireuen Aceh



Kab. Klaten Central Java



Kab. Aceh Barat Aceh



Kota Gorontalo Gorontalo



Kab. Karanganyar Central Java



City of Padang Sidempuan North Sumatera


Sumber: Ringkasan APBD 2012, DJPK; Diolah oleh Seknas FITRA


Subject “Bloated Bureaucracies”; 291 Regional Governments Spend more than 60% on Budgets on Civil Service Costs
Author Hadi Prayitno
Publisher SEKNAS FITRA, Jakarta
Publish year 2012

3 thoughts on ““Bloated Bureaucracies”; 291 Regional Governments Spend more than 60% on Budgets on Civil Service Costs

  1. Anggaran Belanja Pegawai gak bisa dikurangi, tiap tahun pasti naik. Walau tidak ada penambahan pegawai baru. Lo kok bisa? Kenapa? Ini jawabannya :
    1.Setiap 2 tahun sekali, gaji pegawai pasti naik. Namanya kenaikan gaji berkala.
    2.Setiap pegawai yang menikah, akan mendapat tunjangan istri
    3.Setiap pegawai yang punya anak (masimal 2), akan mendapat tunjangan anak
    4.Setiap 4 tahun sekali pegawai akan naik pangkat, yang otomatis akan menaikan gajinya.
    5.Setiap tahun pemerintah pusat ada kebijakan kenaikan gaji PNS.


    Ehhhh omomg2 berapa sih gaji PNS itu? Besar mana dengan pedagang sate gerobak yang ada di simpang jalan itu?

    Kata Pak Wage yang jualan sate di simpang itu tiap hari bisa untung 200 ribu, jadi kalo sebulan dia dapat untung 6 juta.

    Berapa PNS? Apa semuanya PNS ada yang lebih sebesar itu? Gaji PNS tetangga cuma 3 juta lebih !

    Kalo anggota (apalagi direktur/ketua) LSM barapa gajinya ya? Dari mana sumbernya?

    • betul masbro….

      bukan belanja gaji yg diributkan, tp efektifitas belanja APBD itu yg harus didiskusikan. masa belanja modal koq setiap tahunnya tidak lebih dari 50% total belanja?!?!?!?

  2. Analisis FITRA ngaco….???!!!

    klo memang mo bahas belanja PNS jangan mengikutkan data selain belanja gaji. baca dulu peraturan mengenai postur APBD!!

    ada klausul belanja langsung dan belanja tidak langsung, apa itu? silahkan pelajari dulu…nanti kita diskusi lagi.

    belajar yg rajin ya nak…sebelum kau berkoar-koar di ranah publik.

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