Indonesian Political, Business & Finance News

Jakarta and West Java Dominate THR Complaint Reports

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Social Policy

Minister of Manpower Yassierli stated that he received 1,590 reports of holiday allowance (THR) violations this year. “The number of reports in 2026 and 2025 is almost the same, around 1,500 reports,” Yassierli said during a working meeting with Commission IX of the House of Representatives, broadcast via YouTube on Thursday, 9 April 2026.

Yassierli said the reports received through the THR Post have been forwarded to the manpower offices. Some reports have been followed up by manpower inspectors, and some have already initiated summons processes against companies.

From the total complaints, Yassierli said 506 reports have been fully addressed. Some companies have already paid or paid partially.

He then recounted the results of a surprise inspection by the Ministry of Manpower in Semarang Regency, Central Java. He mentioned there was a company that was still short by about 10-15 percent. “The next day it was paid,” he said. He stated that follow-up on violation reports is still in process because it takes time.

Based on regions, Yassierli said DKI Jakarta and West Java dominated the complaints with a total of nearly 1,000 reports, followed by Banten with 200 reports. Meanwhile, the total THR violation reports in Central Java and East Java were recorded at 150 complaints each. “Next, in the next meeting, we will report further progress,” he said.

The provision of holiday allowances is a company obligation that must be paid in full and cannot be instalment. Based on Ministry of Manpower Regulation number 6 of 2016, companies that are late in paying religious THR will be fined 5 percent of the total THR that must be paid. This fine does not eliminate the employer’s obligation to still pay the allowance.

A series of sanctions await employers who do not pay THR. Based on Government Regulation (PP) Number 36 of 2021 on Wages, companies can be subject to administrative sanctions in the form of written warnings, restrictions on business activities, temporary suspension of some or all production equipment, up to freezing of business activities.

Chair of the Manpower Sector of the Indonesian Employers Association Bob Azam stated that the polemic of Eid THR payments that arises every year stems from two things. “The THR problem is combined between compliance and financial issues (of the company),” he told Tempo on Wednesday, 25 March 2026.

According to him, the distribution of THR has become a culture, even in the informal sector which is not strictly monitored by law. Although there is an intention to comply, sometimes companies are constrained by financial capacity.

In addition, he assessed the need for effective bipartite internal dialogue between employers and employees so that this problem does not recur. This discussion is suspected to have not been a priority so far. “It seems trivial but this is the basic foundation of healthy industrial relations,” he said.

Although acknowledging the factor of company financial difficulties, Deputy Minister of Manpower Afriansyah Noor assured that companies that do not fulfil their THR payment obligations will be acted upon. “Companies that do not carry out the payment appeals we give will be given administrative sanctions and fines,” he said.

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