Finance Minister said Civil Servants Salaries will Continue to be Disbursed Through Banks

Jakarta: Minister of Finance Suahasil Nazara has emphasized the distribution of civil servants (PNS) salary will continue to be disbursed through the banking system, not through the Red and White Village cooperatives.

“Things will remain as they are, i will continue transfering salaries as usual” Suahasil said at the Presidential Palace Complex in Jakarta, as quoted by Antara on Wednesday, October 21, 2026.

However, Suahasil did not provide further details regarding the Ministry of Cooperatives proposal to pay civil servants’ salaries through the Red and White Village Cooperatives (KDKMP).

Plan to Distribute Civil Servants’ Salaries Through Cooperatives

Minister of Cooperative Ferry Juliantono said a proposal to distribute civil servants’ salaries through cooperatives had been submitted to the Ministry of Finance.

“The proposal has been submitted to the Ministry of Finance,” Ferry said after attending a coordination meeting on the Red and White Village Cooperatives (KDKMP) in Jakarta on Wednesday, October 21, 2026.

Ferry stated in response to questions about the implementation of the plan to pay civil servants’ salaries through cooperatives.

He said the budget for the salaries was being prepared, but did not provide specific figures or explain the distribution mechanism.

Ferry also did not provide further details about the submitted proposal to the Ministry of Finance, the estimated start date for the salary distribution, or which cooperatives would be involved in providing the service.

According to data from the National Civil Service Agency (BKN) as of October 2026, Indonesia had approximately 6.7 million state civil apparatus (ASN) members, comprising civil servants (PNS) and government employees under work agreements (PPPK).

State-owned pension and insurance company PT Taspen (Persero) recorded 3.28 million retirees among the 9.13 million participants it served as of August 2026. Taspen operates through 46 payment partners and 16,911 service points across Indonesia.

Under the prevailing regulations, civil servants’ salaries are distributed in accordance with Ministry of Finance Regulation No. 11/PMK.05/2016 on the Centralized Payment of Salaries Through Commercial Bank Accounts for Civil Servants, Indonesian National Armed Forces Personnel, and Indonesian National Police Members.