"The salary increase will not cause inflation. It is calculated within the estimated inflation rate of 2.8 percent for the 2024 Draft State Budget (RAPBN)," he said after attending the "Energy Transition Mechanism: ASEAN Country Updates Seminar" in Jakarta on Wednesday.
The government will also raise pensions for retired civil servants by 12 percent.
In his address on the 2024 RAPBN on August 16, President Joko Widodo (Jokowi) said that bureaucratic reform must be strengthened in order for the transformation to run effectively.
The reform is expected to make the central and regional bureaucracy more efficient, competent, professional, and have integrity, he said.
He stressed that the implementation of reform must be consistent and salary increases must be accompanied by increased performance and productivity.
"The improvement of welfare, benefits, and remuneration for civil servants is based on performance and productivity," Jokowi stated.
He expressed hope that the increase would boost the performance of civil servants, accelerate economic transformation, and contribute to national development.
He also advised that the defense and security industry continue to be supported so that it can progress and become independent.
"The state budget can be utilized to meet the needs of alutsista (main equipment in weapon systems) in stages with the support of the domestic defense industry to achieve the minimum basic strength," Jokowi said.
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Translator: Asri Mayang Sari
Editor: Anton Santoso
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