The History of Holiday Allowances in Indonesia, Beginning from Prime Minister Soekiman's Era

Holiday Allowances (THR) are amongst the most anticipated benefits for employees ahead of Eid al-Fitr celebrations. But when did THR actually become a tradition in Indonesia?

According to various sources, the emergence of the THR tradition in Indonesia is inseparable from Indonesia’s sixth Prime Minister, Soekiman Wirjosandjojo. The founder and first chairman general of the Masyumi Party first introduced the THR concept in the early 1950s.

As Prime Minister, Soekiman had a number of work programmes through his cabinet, named the Sukiman-Suwirjo Cabinet. One of the Sukiman-Suwirjo Cabinet’s work programmes at that time was to improve the welfare of state apparatus or civil servants, now more commonly known as civil service apparatus (ASN).

This work programme was realised through the provision of THR to state apparatus members. At that time, the amount of holiday allowance given to state apparatus members ranged between Rp 125-200 per person. Notably, THR was not given as a bonus or salary supplement, but rather in the form of an advance loan that would later be repaid through salary deductions.

Regulations concerning the provision of THR were first outlined in Government Regulation No. 27 of 1954 regarding the provision of holiday advances to civil servants. Under this regulation, THR only applied to civil servants and did not yet apply to private sector workers.