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Govt urges private sector to pay Eid allowances for workers

Tempo - April 8, 2021

Francisca Christy Rosana, Jakarta – Coordinating Minister for Economic Affairs Airlangga Hartarto in Wednesday's press conference strongly urged businesses to pay the Eid allowances, or locally known as THR – a religious holiday allowance – to their workers.

The minister asserted that private sector corporations must adhere to this call as the government had granted many stimulus for the private sector to survive the Covid-19 pandemic.

This issue was discussed by Minister Airlangga in a limited meeting with President Joko "Jokowi" Widodo and state ministers under the current Cabinet.

"We mentioned [in the meeting] that it is time for the private sector to pay the THR [to workers] because there has been many stimulus grants [for the industry]," said Airlangga Hartarto in the online press conference.

The government is eyeing on increasing consumption during the upcoming Eid al FItr period – which marks the end of the Muslim holy month of Ramadan.

The government hopes that the distribution of Eid allowances will push the circulation of money in the market up to Rp250 trillion and pin its hopes on a second quarter GDP growth.

Prior to this, nationwide workers unions have joined forces to press corporations to pay their workers' Eid allowances and not in installments as has happened in 2020 – with many cases of companies not completing their workers' THR installments.

Source: https://en.tempo.co/read/1450240/govt-urges-private-sector-to-pay-eid-allowances-for-worker