Politics · Indonesia · 1 hr ago
Paying Indonesian civil servants through village cooperatives remains an option
Indonesia is considering paying civil servants through village cooperatives, but the plan is still only an option.
Deputy Home Affairs Minister Bima Arya said it is not a requirement for all civil servants and needs more discussion.
Cooperatives Minister Ferry Juliantono said the proposal has been sent to the Finance Ministry, and the government is preparing a payment mechanism.
He said payments are expected in 2026, but gave no details on the first payment or which cooperatives would take part.
A parliamentary committee chair proposed limiting the plan to central government staff, while local government employees would continue receiving pay through regional banks.
He warned that moving local employees’ salaries could shift about 70 percent of regional banks’ low-cost funds to state-owned banks and make it harder to collect loan payments automatically.
The government still needs to confirm cooperative readiness and coordinate with other parties before deciding how the plan will work.
Indonesia’s plan to pay civil servants through village cooperatives remains an option and is not mandatory for all government employees.
Deputy Home Affairs Minister Bima Arya said the proposal needs further discussion and checks on cooperative readiness and coordination.
Cooperatives Minister Ferry Juliantono said the proposal had been submitted to the Finance Ministry and that payments would be made in 2026.
A parliamentary commission chair proposed limiting the plan to central-government employees, while local-government staff would continue to be paid through regional banks.
He said this would help protect regional banks, which could lose deposits and face difficulties collecting loan repayments.
- Who
- Indonesia’s government is considering the plan; Deputy Home Affairs Minister Bima Arya and Cooperatives Minister Ferry Juliantono have commented on it.
- What
- Civil servants could receive salaries through Merah Putih village or urban cooperatives. The scheme is still an option, not a requirement for all employees.
- When
- The proposal was discussed on 14 and 15 October 2026. Ferry said payments would be made in 2026, but did not give a first payment date.
- Where
- Indonesia. Bima spoke in Cangkuang Weta village, Bandung Regency.
- Why
- The sources do not state a single reason for the proposal. A parliamentary commission chair said keeping local-government payrolls at regional banks would help protect those banks.
This story does not have two clearly opposing sides.
Cooperatives Minister Ferry Juliantono said the proposal had been submitted to the Finance Ministry.
Deputy Home Affairs Minister Bima Arya said paying civil servants through cooperatives remained an option and required further discussion.
Commission II chair Rifqinizamy Karsayuda proposed limiting the scheme to central-government employees and keeping local-government payrolls at regional banks.
- Proposed payment channel
- Merah Putih village or urban cooperatives
- Finance Ministry submission
- Ferry Juliantono said the proposal had been submitted
- Payment year
- 2026, according to Ferry Juliantono
- Local-government employees
- Rifqinizamy proposed continuing payment through regional banks
- Scheme status
- An option, not a requirement for all civil servants
7 sources
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