Since decentralization was established in the Indonesian government system in 1999, the way the state apparatus is managed in the various regions has changed. Implementing civil servant management in local governments combines integrated and separate systems, which means that some management functions are under the central government’s authority, and local governments manage others (Sleman Regency Civil Service Training Agency, 2019). This is in accordance with the explanation in State Civil Apparatus Law Number 5 of 2014 local governments carry out civil servant management in the regions by applicable laws and regulations. Decentralization, which has long been practiced in Indonesia, make local governments to better understand the community needs and implement the policies to meet those needs. Implementing decentralization also changes human resource management at the bureaucratic level in local governments (Tjiptoherijanto, 2014). Some authorities related to managing civil servants in the regions include determining civil servant needs, appointing candidates and servants, determining promotions and employee rotations, and dismissing civil servants (Lindawati, Suryana, & Suwatin, 2019). Local governments can also implement a more attractive compensation system for public servants as a form of effort to reduce the level of corruption and reward performance (Tjiptoherijanto, 2014). Compensation for civil servants in the form of salaries and allowances (performance and luxury allowances) has been regulated in Law Number 5 of 2014 concerning the State Civil Apparatus. Articles 79 and 80 explain that the salaries and benefits of civil servants working for the central government are charged to the state revenue and s expenditure budget. In contrast, the salaries and benefits of civil servants working for local governments are charged to the regional revenue and expenditure budget. In line with this, Government Regulation No. 12 of 2019 concerning Regional Financial Management regulates additional income that can be given by the regional government to ASN while taking into account the regional financial capacity and obtaining approval from the Regional People’s Representative Council. ASN receives additional compensation while taking into consideration the workload, site of duty, working conditions, professional scarcity, performance at work, and/or other objective considerations. The burden of salaries and benefits for the state civil apparatus in the regions in the regional revenue and expenditure budgets becomes an issue every year. Data from the Ministry of Finance (https://djpk.kemenkeu.go.id/portal/data/apbd) as of May 2023 shows that personnel expenditure is still the highest component in the realization of regional revenue and expenditure budgets, with a total of 141.08 trillion out of a total expenditure of 305.62 trillion. The large number of regional civil servants certainly influences the amount of personnel expenditure. In addition, some regional non-exempt or honorarium employees are non-ASN employees whose income is financed from the regional revenue and expenditure budget. Honorarium workers are a problem that is still being resolved today. The region’s non-exempt workers currently amount to 77% (around 1.8 million) of the total central and regional non-exempt workers (Kencana, 2022). The resolution of the non-exempt personnel problem has been underway since 2005. Applicants for teachers, health professionals, agricultural extension workers, fisheries and livestock workers, and other technical personnel required by the government are given priority for appointment as non-exempt civil servants. The appointment then raises other problems, namely the unrecognized number of non-exempt workers who have worked before 2005, so they are not included in the non-exempt workers who were appointed as Civil Servant Candidates (Calon Pegawai Negeri Sipil/CPNS). The appointment of non-exempt staff to CPNS was carried out again in 2013 based on Government Regulation No. 56 of 2012 as a follow-up to the problems of data collection and the appointment of non-exempt staff to CPNS in 2005. The appointment is carried out with several requirements that must be met by non-exempt personnel, so only those who meet the requirements can be appointed as CPNS. Since 2014, after the enactment of Law Number 5 of 2014, non-exempt workers have been required to select candidates for state civil apparatus to become government employees with work agreements. Then, the prohibition of accepting non-civil servants or non-PPPK personnel is stated in Government Regulation 49 of 2018, while non-civil servants and non-PPPK personnel who had worked since before the regulation was enacted can still carry out a maximum of 5 years.73
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