Origins of the DPR RI's high salary

The issue regarding the high salaries of DPR RI members often sparks public debate. Many people consider the earnings of lawmakers to be too high when compared with the average income of workers in Indonesia. However, if one traces it from official legal sources and regulations, the origin of the DPR's high salary actually stems from a small base salary, but is padded by many allowances and facilities.

Legal umbrella since 1980

The financial rights of members of the DPR were first guaranteed in Law Number 12 of 1980. This regulation provides that the leaders and members of the state's high institutions, including the DPR, are entitled to a basic salary as well as other administrative rights. This provision was subsequently reinforced again by Law Number 17 of 2014 concerning the MPR, DPR, DPD, and DPRD (MD3 Law). This law states that the details of the financial rights of members of the DPR may be further regulated by the leadership of the DPR in accordance with the legal framework. In other words, the high-salary structure we see today originated from legal legitimization dating back decades.

low base salary

Many people do not realize that the base salary of DPR members is relatively small. Based on Government Regulation Number 75 of 2000, the basic salary of the Speaker of the House of Representatives is only Rp5,040,000 per month, the Deputy Speaker Rp4,620,000, and a member of the House of Representatives Rp4,200,000. This amount has never experienced a significant increase since it was established. From those figures, it appears that the pure base salary is actually far lower than what the public imagined.

The layer of allowances that increases income.

The large income of DPR members actually comes from allowances. Since the era of Presidential Decree No. 59 of 2003, state officials have received position allowances. Then in 2010, the Secretariat-General of the House of Representatives of the Republic of Indonesia issued a circular detailing the various components of allowances, including:

• Honorary allowance to reflect the status as a state official.
• An intensive communications allowance that is considered important for maintaining interaction with constituents.
• Allowance for the enhancement of the supervisory function and the budget.
• Electricity and telephone subscription assistance that amounts to millions of rupiah per month.
• Session money or package money provided during official activities.
• Article 21 income tax allowance that does not significantly reduce net income.

If combined, this layer of allowances can reach tens of millions of rupiah per month. Thus, the take-home pay of DPR members is far larger than the basic salary.

Housing and rent compensation

For years, members of the DPR were provided with official residences in the Kalibata and Ulujami areas. However, in the most recent period, the policy has changed. The official residence is returned to the government, and in return the members of the DPR receive a housing allowance. The compensation scheme announced by DPR leadership of Rp50 million per month is in effect temporarily until October 2025. After that, the funds were used to rent a house for the remainder of the term of office. This compensation is what adds to the perception that the DPR's salary is getting bigger.

facilities to support work

Besides salaries and allowances, there are other budget items that are often considered part of the DPR's salary. For example, the costs of constituency visits, official travel, the support of expert staff, and the operating costs of the council's supporting equipment. These budget items are funded by the state budget and are tied to the activities of members of the DPR, so the public often equates them with personal income, even though technically they are different.

Pension based on base salary.

Interestingly, the pension rights of DPR members do not follow the total amount of allowances, but only 60 percent of the monthly basic salary. That means, if a member of the DPR retires, his pension is relatively small. This reiterates that the size of the DPR's salary during active service is mainly due to allowances and benefits.

Why are there so many allowances?

The DPR's allowance structure was designed to support the legislative, budgeting, and oversight functions. An intensive communication allowance, for instance, is deemed necessary because members of the Indonesian House of Representatives must continually keep in touch with their constituents in their electoral district. Electricity and telephone allowances, and even the session allowance, are allocated to cover personal operating costs incurred while carrying out duties. Whereas compensation for the official residence is provided to ensure that DPR members have a decent place to live while working in Jakarta.

Impact on public perception

The perception of the DPR's high salary is influenced by the layers of allowances, housing compensation, and work-support facilities. In total, a member of the DPR could receive more than Rp60 million per month, even higher if they hold a leadership position. That amount is far above the national average minimum wage, thereby triggering public criticism. However, legally, all of these components have a legitimate basis in law, government regulations, presidential decrees, and DPR internal circulars.

Conclusion

The Indonesian DPR's large salary began with a small base salary, but was subsequently increased by layered allowances and legally sanctioned supporting facilities. The policy change from official residences to housing rent also contributed to increasing total revenue. Although it has attracted criticism, this structure has long been regulated by regulations and reinforced by various official government decisions.