Indef Economist: THR ASN Becomes A Pillar To Face Price Surge

Illustration. (Photo: Doc. Antara)

JAKARTA - Executive Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti stated that the provision of holiday allowances (THR) for State Civil Apparatus (ASN) is useful as an economic cushion in the face of a surge in the price of goods and services, especially welcoming Eid al-Fitr 1446 Hijriah.

Esther stated that if you look at the previous track record, during Ramadan or before Eid al-Fitr, prices for basic commodities and service rates tend to increase, so that with the provision of THR for ASN, it can be a cushion for facing price increases.

"Because inflation must occur during Eid, starting from Ramadan, because the tendency of our people if Eid will definitely increase consumption. So that increases demand for one item, it will encourage an increase in the prices of goods," he said, quoted by Antara, Wednesday, March 12.

However, he conveyed, the cushion was only temporary. Therefore, in order to maintain the positive impact of THR in order to maintain people's purchasing power for a long time, the government needs to maintain the flow of needs, and increase product supply.

This is so that the inflation rate ahead of Eid al-Fitr and after that can be reduced to a minimum.

"It is the law of the economy, so inflation is impossible. How to prevent inflation is not high, the first supply is increased due to an increase in demand, secondly, the distribution flow is smooth," he said.

President Prabowo Subianto officially signed Government Regulation Number 11 of 2025 which regulates the policy of providing holiday allowances (THR) and 13th salary for state civil servants (ASN), including PPPK, PNS, TNI, Polri, judges, to retirees with a total of 9.4 million recipients.

Prabowo detailed the amount of THR and 13th salary for central ASN, TNI/Polri soldiers, and judges including basic salary, attached allowances, and work allowances. The government provides a performance allowance to ASN of 100 percent.

Regional ASN will be given THR and 13th salary in accordance with the capabilities of each region. The THR for ASN will be paid 2 weeks before Lebaran 2025, starting Monday, March 17, 2025. Meanwhile, the 13th salary of ASN will be paid at the beginning of the new school school year, namely in June 2025.