TEMPO.CO, Jakarta - The Indonesian Government is officially requiring state-owned and private corporations to fully disburse workers’ THR payments, or muslim holiday allowance, in order to boost public consumption ahead of Ramadan and the Eid al-Fitr in May.
“We are requiring THR to be paid in its entirety. Similar to the 13th wage (bonus) of state apparatus (ASN), TNI (armed forces), and Police personnel,” said Susiwijono, Coordinating Ministry of Economic Affairs Secretary in a virtual meeting on Thursday, April 8.
Echoing similar reasons mentioned by State Officials before, Susiwijono said the government has already disbursed numerous subsidies such as tax subsidies and credit relaxations during the Covid-19 pandemic in 2020.
The latest government support for the businesses is the tax incentives for the automotive industry, mainly providing temporary luxury tax (PPnBM) cuts for vehicles that are under the ‘luxurious’ category. This proved to be useful as it boosted car sales in March 2021 by 143 percent.
The government is currently pitching a 10 percent tax subsidy to push sales in the housing/residence market. Relaxing loans and credits for corporations is also in the mix.
FRANCISCA CHRISTY ROSANA