Indonesian Political, Business & Finance News

Indomaret Reveals Reason for Changing Overtime Pay Scheme on Public Holidays

| | Source: KOMPAS Translated from Indonesian | Business
Indomaret Reveals Reason for Changing Overtime Pay Scheme on Public Holidays
Image: KOMPAS

JAKARTA – KOMPAS.com – PT Indomarco Prismatama has revealed the reason for changes to overtime pay rules on public holidays, which have been complained about by workers and led to protests outside Indomaret Tower in Pantai Indah Kapuk, North Jakarta, on Tuesday, 26 May 2026. Gondo Sudjoni, Executive Director of Customer Relationship Management at PT Indomarco Prismatama, said the adjustments were made amid rising operational costs. “Indeed, the current global economic situation is something we all know. Businesses must maintain balance,” he said during an interview at Indomaret Tower on Tuesday. “Fuel prices have risen, packaging costs have increased, and raw material prices are up. All these factors are driving up operational costs,” he added. “If these costs rise without balancing business operations, it would disrupt the company’s financial equilibrium,” he continued. He clarified that overtime pay has not been abolished entirely. “We have not abolished overtime pay entirely. Some days will be compensated with leave, while others still receive overtime wages,” he said. The specifics of the new scheme are currently being discussed with the Ministry of Manpower. He stated the overtime adjustment is part of efforts to streamline costs amid rising distribution and store service expenses. “If we don’t operate efficiently with our costs, it becomes an immense burden,” he said. “In rural areas, distances can exceed 200 kilometres – for example in Sulawesi, stores are hundreds of kilometres apart. This incurs significant costs,” he explained. “Yet we must continue providing service to customers,” he added. The company hopes employees will understand the situation, enabling both parties to weather economic pressures together.

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