Tidore – Indonesia’s budget efficiency policy is beginning to have tangible consequences at the regional level. Thousands of civil servants (ASN), government contract employees (PPPK), and part-time PPPK personnel in Tidore Islands City, North Maluku, were involved in a chaotic confrontation during a mass assembly on Monday (July 6, 2026).
The unrest erupted after Tidore Mayor Muhammad Sinen announced that the city was facing a budget deficit of more than Rp50 billion. To reduce the fiscal burden, the local government decided to cut the Additional Employee Income (TPP) for civil servants and reduce the salaries of PPPK and part-time PPPK employees by 30 percent.
According to iNews.id, tensions escalated when the mayor warned that the local government might be forced to lay off some employees if the fiscal situation continued to deteriorate. The statement was immediately rejected by participants, triggering pushing and shoving that eventually led to damage to government facilities. A fire was also briefly set in the courtyard of the Tidore Mayor’s Office.
Following discussions with representatives of the employees, the Tidore City Government assured that no PPPK or part-time PPPK workers would be laid off. However, the temporary 30 percent reduction in employee income will remain in effect until the city’s financial condition improves.
Mayor Muhammad Sinen said he was prepared to take full responsibility for the policy. He even pledged to resign if the government were ultimately forced to dismiss PPPK and part-time PPPK employees. According to him, holding onto his position would not be worth sacrificing the livelihoods of more than 2,000 workers who depend on their jobs.
The incident in Tidore illustrates how budget efficiency measures are beginning to affect local governments directly. As fiscal pressures mount and regional deficits widen, many local administrations face a difficult balancing act between restoring financial stability and safeguarding employee welfare while maintaining the quality of public services.
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