Strategy for prioritising the use of THR to pay off debt

Jakarta – Financial planner Rista Zwestika CFP WMI said that the holiday allowance (THR) funds can be used to pay off debt, but this should be done by setting repayment priorities based on the type of debt. ‘I usually use a simple approach. Expensive debt vs. manageable debt,’ Rista told ANTARA on Friday. ‘Expensive debt such as credit cards, pay later, and high-interest consumer loans should be paid off first,’ she said. Because it can burden finances, repayment of expensive debt is advised to be prioritised higher. ‘It doesn’t always have to be paid off with THR. In uncertain economic conditions, maintaining liquidity is also important. Therefore I often share the principle, ’Don’t be debt-free, but cash-strapped’,’ she said. In uncertain economic conditions, she said, part of the THR should be set aside as cash reserves as a precaution. The government has issued Minister of Manpower Circular No. M/3/HK.04.00/III/2026 on the Implementation of the Provision of Religious THR in 2026 for Workers in companies. Minister of Manpower Yassierli said that providing religious THR to workers is an obligation that employers must fulfil.