JAKARTA - The government, through the Coordinating Ministry for Economic Affairs, revealed that the holiday allowance (THR) has an important role in encouraging economic activity that tends to slope due to the COVID-19 pandemic.

Coordinating Minister for the Economy Airlangga Hartarto admitted that his party had calculated that this year's THR could increase the gross domestic product (GDP) structure by 1 percent.

"So this THR can be a 1 percent GDP lever, if the total payment for all workers, plus ASN, as well as TNI / Polri," he said in a virtual press conference, Friday, April 23.

Therefore, the government hopes that the private sector will be able to fulfill the obligation to pay the Lebaran bonus to their workers. Airlangga also advised that the THR payment must be carried out simultaneously and in full without in installments

"The total THR (this year) is close to IDR 150 trillion," he said.

Prior to that, on Thursday, April 22, Minister of Finance Sri Mulyani had opened his voice regarding the distribution of THR to ASN, TNI and Polri. He explained that in 2021 the government has allocated a budget of IDR 45.4 trillion for the payment of holiday allowances.

Of this amount, Rp.30.6 trillion of which is allocated to central government agencies. Meanwhile, another Rp. 14.8 trillion was disbursed to government officials in the regions.

"The value of Rp. 45.4 trillion compared to the actual expenditure up to this month which amounted to Rp. 350 trillion is very large," he said in a virtual press conference for our APBN.

As for the payment plan, THR will start to be distributed on D-10 to D-5 before the Eid Al-Fitr.

"Approximately disbursed in the last week of April 2021 or early May 2021," he said.

The Minister of Finance also revealed that more detailed information would be provided after the standard regulations had been released by the government.

"Currently the PP (Government Regulation) is being prepared and is in a joint initial process to then be signed by the President," added the Minister.


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