Regional Economic Literature Analysis: The Effect of PPPK Civil Servant Status Changes to PNS on Local Economic Circulation in Jambi Province

  • Pardinal
  • Mike Mayasari Institute Agama Islam Kerinci
  • Pratiwi Puji Lastari
Keywords: regional economy, PPPK, PNS, local money circulation, multiplier effect, Jambi

Abstract

This study aims to comprehensively examine the regional economic effects of the employment status change from Government Employees with Work Agreements (PPPK) to Civil Servants (PNS) in Jambi Province. Using a literature analysis approach, this research explores previous studies that discuss the relationship between civil service employment policies and regional economic dynamics. The main focus is directed toward the impact of increased income and job stability on money circulation, household consumption, savings, and the growth of the MSME sector. The synthesis results indicate that the transition from PPPK to PNS has the potential to create an economic multiplier effect through increased purchasing power, government employee spending, and local investment. On the other hand, fiscal policy and public expenditure planning become determining factors to ensure that these economic benefits remain sustainable. This article contributes theoretically to strengthening the model of regional economic analysis based on public employment policy and provides policy recommendations for optimizing apparatus-based regional development

References

Badan Pusat Statistik. (2024). Provinsi Jambi dalam Angka 2024. BPS Provinsi Jambi.
Kementerian Keuangan Republik Indonesia. (2023). Laporan Kinerja Fiskal dan Dampak Ekonomi Regional. Jakarta: Kemenkeu.
Mahmudi, A., & Alisjahbana, A. (2020). Fiscal decentralization and regional development: Evidence from Indonesian local governments. Journal of Public Administration and Governance, 10(3), 55–70.
Rahman, F., & Lestari, D. (2022). The multiplier effects of government spending on local economic growth: Evidence from Indonesia. Regional Studies and Economic Development, 14(2), 87–101.
Suryani, N., Hidayat, R., & Prabowo, D. (2021). Government expenditure, household consumption, and regional economic growth: A panel data analysis in Indonesia. Economic Journal of Emerging Markets, 13(1), 23–36.
Aziz, M. (2021). Public sector spending and regional growth: Evidence from Indonesian provinces. Journal of Regional Economic Policy, 14(2), 115–130.
Haryanto, S. (2020). Household income stability and local consumption behavior in civil servant households. Economic Development Review, 8(1), 44–58.
Hirschman, A. O. (1958). The Strategy of Economic Development. Yale University Press.
Kementerian Keuangan Republik Indonesia. (2023). Laporan Kinerja Fiskal Daerah Provinsi Jambi Tahun 2023.
Rahman, T., & Yusuf, A. (2022). Employment policy and regional economic performance: Evidence from local government employees. Indonesian Journal of Economic Studies, 27(3), 201–217.
Richardson, H. W. (1978). Regional Economics: Location Theory, Urban Structure and Regional Change. Palgrave Macmillan.
Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill.
Published
2025-12-08
Section
Articles