Jakarta – Coordinating Economic Minister Airlangga Hartarto has reminded businesses that they are obligated pay out Idul Fitri holiday bonuses (THR) to employees despite the economic pressures brought about by the COVID-19 pandemic.
"President Joko 'Jokowi' Widodo has discussed the business sector's readiness to pay THR [Idul Fitri bonuses], and [we remind] the private sector that paying out THR is mandatory," Airlangga said during a virtual press briefing following a Cabinet meeting at the Bogor Presidential Palace in West Java on Thursday, as quoted by Antara News Agency.
Airlangga said that the government had allocated Rp 405.1 trillion (US$25.1 billion) to fight COVID-19, as stipulated by Government Regulation in lieu of law (Perppu) No. 1/2020 on state financial policy and financial system stability for handling COVID-19.
He added that the government would expand fiscal stimulus eligibility beyond the manufacturing sector.
"We will support more business sectors, not just manufacturing, but others that have been affected, such as tourism and transportation," he said.
The government has said the country's economy may grow 2.3 percent this year, significantly slower than the 5.3 predicted by the 2020 state budget. In the government's worst-case scenario, the economy could contract by 0.4 percent. The World Bank has also slashed its projection of Indonesia's economic growth to a baseline of 2.1 percent if the situation starts to normalize by June. (aly)