Beware: RT/RW or Community Organisations Requesting Holiday Bonuses from Shops, Companies or Factories Could Face Criminal Charges

Requests for Tunjangan Hari Raya (THR) holiday bonuses by neighbourhood administrators or community organisations frequently become contentious as the Eid holiday approaches.

One recent instance saw a THR solicitation letter from the Kalideres neighbourhood council chief in West Jakarta go viral on social media, as it specified suggested donation amounts ranging from Rp500,000 to Rp200,000 to various companies.

The neighbourhood council chief stated that the THR proposal format was inherited from previous administrations. He emphasised that the nominal amounts listed were not mandatory for companies.

According to him, the collected funds were intended to purchase Eid gift packages for neighbourhood administrators, including village heads and personnel assisting in local operations.

The controversy raised questions about whether neighbourhood councils, district administrators or community organisations are legally permitted to solicit THR contributions from companies and business operators.

THR is regulated under the Labour Ministry Regulation (Permenaker) No. 6 of 2016 concerning Religious Holiday Bonuses for Workers or Labourers in Companies.

This regulation explicitly states that THR is an employer obligation to workers or labourers, not to other parties.

The regulation also stipulates that THR applies solely to the employment relationship between companies and workers. Neighbourhood councils, district councils, youth organisations and community groups are not included as authorised THR recipients under these regulations.

Under Article 368 of the Criminal Code concerning extortion, any person who coerces another to provide something with intent to unlawfully benefit themselves or others may face criminal prosecution. Therefore, soliciting THR from businesses through neighbourhood or community organisations may constitute extortion under criminal law.