The Indonesian government has announced that it will begin disbursing the annual Eid al-Fitr holiday bonus, known as Tunjangan Hari Raya (THR), for civil servants and pensioners starting from ten days before the holiday. Finance Minister Sri Mulyani made the announcement at a press conference held on Wednesday in Jakarta. The THR bonus will be given to around 1.8 million civil servants in central government, including police and military officers, as well as around 3.7 million regional civil servants, including 1.1 million teacher civil servants receiving the professional teacher allowance and additional income allowance.
Mulyani stated that the THR will consist of a regular salary or pension plus attached allowances such as family allowances, food allowances, and other structural, functional, or general allowances. Additionally, those who receive performance allowances will also receive a 50% performance allowance per month. The government expects to disburse the bonus in a way that maintains the momentum of economic recovery through increased purchasing power.
For regional government agencies, up to 50% additional income allowance will be granted under consideration of the local fiscal capacity and regulations. Teachers and academics who do not receive performance or additional income allowances will receive a 50% professional teacher allowance and 50% professional academic allowance. The Finance Minister hopes that the THR disbursement will be consistent with the government’s affirmation of assisting disadvantaged groups through social assistance, including food assistance.
The government’s continued provision of holiday bonuses is expected to encourage consumer spending, which has taken a significant hit due to the COVID-19 pandemic. While the pandemic has caused economic uncertainties for Indonesia, Mulyani stated that the central government has allocated around IDR 156.4 trillion to ensure the disbursement of pension benefit and THR to support the economic activities of pensioners and civil servants.