Indonesian Political, Business & Finance News

Moments from Labour Minister's Surprise Inspection of Company Instalment THR Payments in Semarang

| Source: CNBC Translated from Indonesian | Regulation
Moments from Labour Minister's Surprise Inspection of Company Instalment THR Payments in Semarang
Image: CNBC

Labour Minister Yassierli conducted a surprise inspection (sidak) at a company initialled HSW in Semarang Regency, Central Java, after receiving reports that workers’ Holiday Allowance (THR) at the company was not paid in full, on Tuesday (31/3/2026). During the inspection, Yassierli urged the company to immediately settle the remaining unpaid THR. From the meeting with management, the company employing around 951 workers expressed commitment to completing the payments by 2 April 2026 at the latest. This case stemmed from a complaint received by the 2026 Religious THR Command Post of the Ministry of Manpower (Kemnaker) on 16 March 2026. In the report, the company was accused of not paying THR despite having passed the deadline of seven days before the religious holiday. After follow-up by labour inspectors, the company made a payment on 18 March 2026. However, a follow-up report emerged that the payment was not made in full. THR regulations indeed require payment no later than seven days before the holiday and must be paid in full, not in instalments. During the inspection, the Labour Minister obtained information that the non-compliant THR payment was due to the company’s poor economic condition, as well as a misunderstanding linking THR to workers’ attendance levels. Yassierli stressed that cases like this must not happen again, either at that company or others. According to him, every company is obliged to comply with legal regulations because Indonesia is a rule-of-law state that places the protection of workers’ rights as a mandatory obligation.

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