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What Are the Key Provisions of PERPRES 19/2025 on Employee Performance Allowances?

PERPRES 19/2025 establishes performance allowances for employees in Indonesia's Ministry of Higher Education, Science, and Technology, with specific eligibility criteria and tax obligations.
What Are the Key Provisions of PERPRES 19/2025 on Employee Performance Allowances?

1.0 Regulatory Foundation

PERPRES 19/2025, enacted in 2025, aims to structure performance-based incentives for employees within Indonesia’s Ministry of Higher Education, Science, and Technology (Kementerian Pendidikan Tinggi, Sains, dan Teknologi). This regulation aligns with broader civil service reforms to enhance accountability and productivity.

Pasal 1 Definitions (Verbatim):
1. Pegawai di Lingkungan Kementerian Pendidikan Tinggi, Sains, dan Teknologi:
"Pegawai Aparatur Sipil Negara dan Pegawai Lainnya yang berdasarkan keputusan pejabat yang berwenang diangkat dalam suatu jabatan dan bekerja secara penuh pada satuan organisasi di lingkungan Kementerian Pendidikan Tinggi, Sains, dan Teknologi."
Translation: Employees in the Ministry include civil servants and other staff appointed by authorized officials to full-time roles within the Ministry’s organizational units.

  1. Pegawai Aparatur Sipil Negara:
    "Pegawai negeri sipil dan pegawai pemerintah dengan perjanjian kerja yang diangkat oleh pejabat pembina kepegawaian dan diserahi tugas dalam suatu jabatan pemerintahan atau diserahi tugas negara lainnya dan diberikan penghasilan berdasarkan peraturan perundang-undangan."
    Translation: Civil servants include those hired under contractual agreements, assigned to government roles, and compensated per statutory provisions.
  2. Pegawai Lainnya:
    "Pegawai yang diangkat pada jabatan yang telah mendapat persetujuan dari menteri yang menyelenggarakan urusan pemerintahan di bidang aparatur negara."
    Translation: Other employees are those appointed to positions approved by the minister overseeing state apparatus affairs.

Matrix 1.1: Key Definitions

TermMinistry Employees
Indonesian TermPegawai di Lingkungan Kementerian
Definition SummaryFull-time civil servants and staff in Ministry roles
Pasal 1(1)
TermCivil Servants
Indonesian TermPegawai Aparatur Sipil Negara
Definition SummaryGovernment employees under contractual or statutory terms
Pasal 1(2)
TermOther Employees
Indonesian TermPegawai Lainnya
Definition SummaryNon-civil servants approved by the relevant minister
Pasal 1(3)

2.0 Core Framework

Performance Allowance Structure (Pasal 5):
- Minister: Granted 150% of the highest-class performance allowance in the Ministry (Pasal 5(1)).
- Deputy Minister: Granted 90% of the Minister’s allowance (Pasal 5(2)).
- Effective Date: Allowances commence from the date of inauguration (Pasal 5(3)).

Tax Obligations (Pasal 6):
"Pajak penghasilan atas tunjangan kinerja sebagaimana dimaksud dalam Pasal 3 dan Pasal 5 dikenakan sesuai dengan ketentuan peraturan perundang-undangan."
Translation/Analysis: Income tax on performance allowances under Pasal 3 and 5 follows statutory tax regulations, ensuring compliance with Indonesia’s tax code.

Matrix 2.1: Allowance Breakdown

PositionMinister
Allowance Percentage150% of highest class
Pasal 5(1)
PositionDeputy Minister
Allowance Percentage90% of Minister’s rate
Pasal 5(2)

3.0 Implementation Requirements

Eligibility Exclusions (Pasal 2):
Allowances are not granted to:
1. Employees without specific roles.
2. Suspended or inactive staff.
3. Employees receiving uang tunggu (waiting pay) post-termination.
4. Those on non-state-funded leave or pre-retirement assignments.
5. Staff in public service agencies with regulated remuneration.
6. Employees at state-owned universities.

Matrix 3.1: Exclusion Categories

CategoryNo specific role
Pasal 2
CategorySuspended/inactive staff
Pasal 2
CategoryRecipients of waiting pay
Pasal 2
CategoryNon-state leave/pre-retirement
Pasal 2
CategoryPublic service agency staff
Pasal 2
CategoryState university employees
Pasal 2

Timeline: Allowances for Minister/Deputy Minister apply retroactively to their inauguration date (Pasal 5(3)).


4.0 Enforcement & Sanctions

The regulation does not specify explicit penalties for non-compliance. Enforcement relies on administrative adherence to eligibility criteria and tax obligations outlined in Pasal 2, 5, and 6. Misapplication of allowances may trigger audits under general civil service or fiscal regulations.


5.0 Implications & Outlook

Stakeholder Impact:
- Employees: Incentivizes performance but restricts eligibility for certain roles (e.g., suspended staff).
- Ministry: Requires clear role definitions and budget allocation for allowances.
- Government: Aligns with fiscal discipline through tax compliance (Pasal 6).

Key Takeaways:
1. Allowances are tiered for leadership (Minister/Deputy Minister) and tied to inauguration dates.
2. Exclusions emphasize active, full-time roles.
3. Tax obligations ensure integration with national revenue systems.


Official Source

Full regulation available at: https://peraturan.bpk.go.id/ (search: PERPRES 19/2025).
Citation: Presiden Republik Indonesia, Peraturan Presiden Nomor 19 Tahun 2025 tentang Tunjangan Kinerja Pegawai di Lingkungan Kementerian Pendidikan Tinggi, Sains, dan Teknologi.

Law Database

Access PERPRES 19/2025 in the CRPG Law Database: PERPRES 19/2025


Disclaimer

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