JAKARTA - Director of Economics at the Digital Center of Economics and Law Studies (Celios) Nailul Huda revealed that the provision of holiday allowances (THR) increases public spending, especially the middle and middle class.
"When there is THR, there will be additional positive income for the community. The positive income will increase directly, which will increase spending because for the middle and lower middle class, most of their income will be spent again," said Nailul Huda as quoted by ANTARA, Saturday, March 15.
According to him, the impact of temporary during Ramadan and Eid. After that, usually purchasing power will be corrected again. Just like last year where household consumption growth in the quarter had the phenomenon of Ramadan-Lebaran, it was higher than in other quarters.
"This year it seems that the first quarter of household consumption growth will be higher than the growth in household consumption in other quarters," said Nailul Huda.
Coordinating Minister for Economic Affairs Airlangga Hartarto appealed to entrepreneurs to carry out the process of disbursing the holiday allowance (THR) faster than the time set by the government.
He conveyed this appeal in order to maintain people's purchasing power ahead of Eid al-Fitr.
THR must be paid no later than seven days before religious holidays.
Meanwhile, Chairman of the Indonesian Employers' Association (Apindo) Shinta W. Kamdani, ensured that the companies that are members of the association have prepared themselves to pay THR according to applicable regulations.
But Shinta admits there are still some companies that may face obstacles in THR disbursement on time.
His party continues to strive to ensure that all its members can fulfill these obligations for the welfare of workers.
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