Apindo Proposes Bipartite Dialogue As A Result Of Not All Entrepreneurs Being Able To Pay 100 Percent THR

JAKARTA - Ahead of Eid al-Fitr or Lebaran 2025, the payment for the holiday allowance (THR) is again in the spotlight.

Chairman of the Indonesian Employers' Association (Apindo) for Manpower Bob Azam emphasized that basically entrepreneurs want to fulfill their THR obligations to workers.

However, he also reminded that the financial condition of each company is different, so there needs to be room for dialogue between employers and workers.

"Entrepreneurs also want to pay THR, because it has become a culture in Indonesia. Not only for formal workers, but also informal workers, such as household assistants and others. Everyone wants to share THR," Bob told reporters, Bob emphasized, not all companies have good financial conditions. There are those who experience cash flow disturbances, especially in certain sectors that are experiencing difficulties.

"For companies whose cash flow is disrupted, we urge them to discuss bipartitely between employers and workers. Don't let THR, the company is forced to close its business. That's called tiji tibeh, dead siji mati kabeh (one dead, all dead)," he said.

When asked about how many Apindo members were able to pay the full THR, Bob Azam said, the majority of entrepreneurs were still trying to fulfill these obligations. However, it depends on the financial condition of each company.

"Many companies are trying to pay 100 percent, but this requires large cash flow. For example, in the oil palm plantation sector, some say that in the last three months there has been no harvest, so it is very disturbing to their cash flow," said Bob.

According to Bob, in that case, the best decision must be taken through bipartite dialogue within the company.

"We outside cannot judge. The most familiar with the company's financial condition are the employers and their own workers," said Bob.

Furthermore, Bob also denied that several companies had terminated employment (PHK) to avoid paying THR.

"PHK is not easy, because cash flow is also needed. If layoffs are carried out after cash flow runs out, even workers can't get severance pay. So, there are many entrepreneurs who, if they have to lay off, they do it when they still have cash flow," explained Bob.