Indef Suggests Government To Supervise THR In Private Sector

Illustration. (Photo: Doc. Antara)

JAKARTA - Deputy Director of the Institute for Development of Economics and Finance (Indef) Eko Listiyanto advised the government to increase supervision of the provision of holiday allowances (THR) in the private sector.

This is to ensure that the THR has an optimal impact on economic performance.

"Because actually the impact can be large from the THR of the private sector. So, the role of the government needs to optimize the policy of supervision and enforcement of sanctions," said Eko during an Indef public discussion "The Dynamics of Eid and Economic Direction Prabowo-Gibran" in Jakarta, quoted from Antara, Tuesday, March 26.

Eko agrees that giving THR 100 percent to state civil servants (ASN) can have a positive impact on the economy. However, the portion of ASN in the domestic formal worker segment only contributes about 10 percent, while the other 90 percent work in the private sector.

Therefore, he assessed that the impact of the THR would not be so optimal if efforts to provide 100 percent THR only apply to ASN without supervision in the private sector.

"The civil servant is only around 4.3 million, while the formal worker is 57 million. So, actually if you want to be more significant, the one who pays 100 percent is the private sector," he said.

It is known, the government provides the THR and 13th full salary, with a 100 percent performance allowance component. This is an increase compared to previous years which amounted to 50 percent.

In detail, the THR component and the 13th salary for ASN/official/TNI/Polri consist of basic salary according to the income value as of March 2024 for THR and May 2024 for the 13th salary; office allowance/general; allowances attached to basic salary (family allowances and food allowances); and 100 percent performance allowance for central ASN and as high as 100 percent for regional ASN.

Providing performance allowances for regional ASN considers regional fiscal capacity capabilities and in accordance with statutory regulations.

Meanwhile, the THR component and the 13th salary for retirement and pension recipients include basic pensions, family allowances, food allowances, and additional income.

As for the teaching and lecture professions, components received by 100 percent of professional allowances, honorary allowances for professors, or additional teacher income.

Minister of Finance Sri Mulyani hopes that the THR can encourage the purchasing power of ASN so that it can have a positive impact on the national economy.

"I hope that ASN can spend THR and 13th salary on domestic products to be really useful. I hope this will really encourage and improve the economy through purchasing power from ASN, TNI, Polri, retirees," said Sri Mulyani.