Business Leaders Concerned as Community Leaders Demand Holiday Allowance Contributions
Jakarta — The phenomenon of holiday allowance (THR) demands upon business operators has resurged ahead of Eid 1447 Hijri. Several entrepreneurs have complained about financial requests from various parties in their business vicinity, ranging from rogue local government officials to community organisations.
The Chairwoman of the Jakarta Chamber of Commerce and Industry (Kadin), Diana Dewi, views such practices not merely as improper but also as disruptive to business activities. Moreover, the economic conditions that have not yet fully recovered mean many companies remain cautious in managing cash flow.
According to her, these recurring demands in the lead-up to the Eid celebration become an additional burden for business operators. Furthermore, companies at the same time have a primary obligation to pay THR to their workers.
“Requests for holiday allowances (THR) from business operators, including micro, small and medium enterprises, ahead of Eid 1447 Hijri by rogue village heads, district officials, neighbourhood leaders, civil society organisations or other parties are clearly disruptive. This is an illegal act that falls under the category of extortion and violates the law,” Diana stated.
She views such practices as not only financially onerous but also potentially disruptive to the operational stability of companies. Many enterprises, particularly small and medium-sized ones, must manage their finances rigorously in the lead-up to Eid.
In certain circumstances, she noted, companies must even reorganise their spending to ensure obligations to employees are met. Therefore, additional financial requests from external parties are deemed to further constrain the financial capacity of enterprises.
“Besides being burdensome, this also damages company cash flow. Moreover, at present many companies face quite difficult conditions,” Diana remarked.
She also highlighted the position of local officials such as neighbourhood leaders (RT) and sub-neighbourhood leaders (RW) who should serve as government partners in serving the community. According to her, such roles should not be misused to demand coercive contributions.
On the other hand, the phenomenon of THR demands upon entrepreneurs has been said to have persisted for quite some time and often emerges ahead of Eid. However, the practice continues to occur in a number of regions.
Diana has accordingly encouraged business operators not to hesitate in reporting should they face pressure or intimidation concerning such financial demands.
“I request that my fellow entrepreneurs, should any parties forcefully demand THR or even engage in intimidation, to immediately report to the authorities,” she stressed.