Controversy Over ASN Salary Distribution Via Red and White Village Cooperative Draws Attention from Ministers and DPR Members

JAKARTA, KOMPAS.com - The government plans to distribute the salaries of State Civil Apparatus (ASN) through the Red and White Village/Urban Cooperative (KDKMP).

Cooperatives Minister Ferry Juliantono revealed that he has discussed this matter with Finance Minister Suahasil Nazara and plans to address it in a joint meeting with the Ministry of Finance.

"The cooperative is offering to participate in salary payments. I just spoke with the Finance Minister earlier. A joint meeting will be held," Ferry stated at the Presidential Palace in Jakarta on Wednesday (21/10/2026) evening.

Ferry acknowledged that this is still just a proposal. However, he suggested that KDKMP could serve as one of the instruments for ASN salary payments.

This proposal was then refuted by the Minister of Administrative and Bureaucratic Reform (Menpan RB), Rini Widyantini.

She emphasized that the key principle is to ensure that salary distribution does not complicate matters for ASNs.

"What is important is that ASNs receive their rights easily, comfortably, and transparently. That’s the principle; we shouldn’t complicate things for ASNs," she remarked.

Meanwhile, Finance Minister Suahasil confirmed that ASN salaries have not been distributed via KDMP.

He stated that ASN salaries will continue to be distributed through existing mechanisms.

"It will remain as it is; I will still transfer as usual," Suahasil said at the Palace Complex in Jakarta on Tuesday (20/10/2026).

Response from the DPR

The proposal for salary payments to ASNs through KDKMP elicited mixed responses from members of the DPR.

The chairman of Commission II of the DPR, Rifqinizamy Karsayuda, expressed concerns that distributing salaries through KDKMP could lead to the collapse of regional banks.

He noted that the shift in salary distribution could potentially displace savings and demand deposits, which have been one of the pillars supporting regional banks.

"Recently, the Regional Banking Association, or Asbanda, which represents development banks across Indonesia, has raised concerns about the transfer of cash and salary payments from regional banks to Himbara," Rifqinizamy told Kompas.com, Thursday (15/10/2026).

He argued that the government should protect the sustainability of the regional banking ecosystem.