Business Leaders Expose Extortion Racket Disguised as Eid Holiday Allowances

Jakarta – The Jakarta Chamber of Commerce and Industry (Kadin DKI Jakarta) has highlighted the reemergence of illegal levies disguised as THR (Eid holiday allowances) that are proliferating ahead of Eid al-Fitr 1447 H. The practice has been reported by business operators across various sectors, including small and medium enterprises.

This phenomenon is regarded as a longstanding problem that recurs annually. Business operators frequently receive requests for funds from various parties in their vicinity, both directly and through formal written requests.

Kadin DKI Jakarta Chair Diana Dewi stated that such practices cannot be justified as they fall outside official mechanisms and lack legal basis. “RT/RW heads and similar officials are government partners who should serve the community, not exploit their position to demand THR contributions from business operators. Such actions are clearly wrong and inappropriate,” Diana told CNBC Indonesia on Thursday (12 March 2026).

She views the situation as a dilemma for many companies. On one hand, companies must fulfil their obligation to pay THR to employees. On the other hand, they face various external fund requests.

According to her, this condition has the potential to increase pressure on the business sector, particularly for companies struggling to maintain financial stability. “Many companies already find it difficult to meet their obligation to provide THR to employees, only to be burdened further with providing THR to external parties,” Diana said.

Furthermore, Kadin DKI has noted reports from business operators regarding THR requests coming from various parties ahead of Eid. However, not all cases are reported officially as some companies prefer to resolve matters internally.

Diana believes the government must address this issue more seriously to prevent it from recurring annually. She recommends stricter oversight accompanied by regulations with firm penalties. “These THR requests do happen every year. It comes down to government firmness in regulating and monitoring. Perhaps if circulars prove ineffective, other regulations need to be enacted with strict sanctions,” she said.

She emphasised that illegal levies justified as THR cannot be tolerated as they harm the business climate and create negative precedents in society. “We have received numerous reports regarding THR requests. However, in general, THR-labelled levies outside the company are completely unjustifiable, especially if carried out by government officials,” she concluded.