Airlangga Remind Entrepreneurs Must Pay THR, No Reason

Coordinating Minister for the Economy Airlangga Hartarto. (Irfan Meidianto / VOI)

JAKARTA - The corona virus pandemic or COVID-19 is increasingly spreading in Indonesia. Along with this, the central government also asks people to stay at home or stay at home. As a result of the outbreak of COVID-19, domestic entrepreneurs have suffered losses, and some have even terminated their employment (PHK).

However, this condition cannot be used as an excuse by employers for not fulfilling their obligation to pay holiday allowances (THR). As is known, in the next month we will enter Eid al-Fitr or Lebaran 2020.

Coordinating Minister for Economic Affairs Airlangga Hartarto said THR payments for all entrepreneurs, especially the private sector, are obligatory. Because it has been regulated by law.

"It is reminded that the private sector must pay the THR based on the required law, and the Ministry of Manpower prepares things related to the THR," he said, via video conference, in Jakarta, Thursday, April 2.

Airlangga said that the THR payment plan had also been discussed by President Joko Widodo (Jokowi) together with the relevant ministers.

The government, said Airlangga, has also provided a stimulus to the public and the business world through the legal basis of Perppu No.1 of 2020 concerning State Financial Policy and Financial System Stability. A total of IDR 405.1 trillion has been disbursed by the government to increase the budget in the 2020 State Budget for handling the impact of COVID-19.

One of the stimuli, said Airlangga, was regarding income tax article 21 for workers with an income of up to Rp 200 million per year.

"Well, support for the business sector is expanded. So it is not only given to the manufacturing industry, but also to the affected sectors. Including tourism, tourism-related services, transportation, and other sectors which we will coordinate to add," he explained.

For information, President Jokowi previously signed Perppu Number 1 of 2020 concerning State Financial Policy and Financial System Stability. In the Perppu, the President increased the allocation of spending and financing in the 2020 State Budget (APBN) of IDR 405.1 trillion to deal with the COVID-19 pandemic. Previously, the 2020 State Budget expenditure allocation was set at IDR 2,540.4 trillion.

Jokowi said the total additional budget of Rp. 405.1 was allocated Rp. 75 trillion for health spending, Rp110 trillion for social protection, Rp. 70.1 trillion for tax incentives and the people's business credit stimulus (KUR), and Rp. 150 trillion for financing the national economic recovery program.