Sorry Mr. Jokowi, Many Hotel-Restaurant Entrepreneurs Who Still Can Not Give THR Full This Year

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JAKARTA - Vice Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Emil Arifin admitted that many entrepreneurs are still unable to provide full Holiday Allowance (THR) this year.

In fact, President Joko Widodo has asked businesses to pay THR full because the government has provided various incentives.

"There have been many entrepreneurs who complain that this year they can not deliver full THR. They can be in installments again like last year", Emil told VOI, Monday, April 12.

It is known that this year the government has prepared a budget allocation for the national economic recovery program (PEN) of IDR627.96 trillion.

This budget is used for government spending in the field of health, social protection programs, as well as support for MSMEs and corporations. Then, the government also again provides tax incentives of up to IDR47.3 trillion.

However, Emil felt that it could not cover the operational losses of restaurant entrepreneurs, cafes, malls to hotels until now.

By 2020, the average entrepreneur will only benefit 50 percent from normal times. Until finally, by the end of 2020, their income will rise by 10 percent. But, from January to April 2021, their profits stagnated at 60 percent.

"The government does provide tax incentives. But all we need is cash for the operational costs. There are grants, but it is only small and inadequate", said Emil.

"We want the government to cover THR 50 percent. If the government insists we pay 100 percent payment, then ask the government to pay it", he continued.

Previously, President Jokowi asked private companies to provide THR to their employees. Moreover, there are already many facilities and incentives provided by the government for private parties in the midst of the COVID-19 pandemic.

"The government encourages the private sector to provide THR for employees, given the facilities and incentives to several sectors that have been provided by the government", President Jokowi said as quoted from his Twitter account @jokowi.

The Ministry of Manpower also requires employers to pay THR for workers or workers in full and on time, which is seven days before religious holidays or H-7. This rule applies to all sectors, without exception.

Employment Minister Ida Fauziyah said religious THR is a non-wage income that must be paid by employers to workers.

This religious THR payment is by PP number 36 of 2021 concerning wages and Regulation of the Minister of Manpower no. 6 of 2016 concerning Religious Holiday Allowance for Workers in Company.

"Thr provisions in 2021 as the provisions of Ministerial Regulation number 6 of 2016 that THR payments must be given H-7 before the holiday itself arrives", said Ida.