Non-Permanent Employees Receive No Idul Fitri Allowance

KOMPAS/WISNU WIDIANTORO

President Joko Widodo (third left), accompanied by Vice President Jusuf Kalla (second right), Finance Minister Sri Mulyani Indrawati (fourth left), Administrative and Bureaucratic Reform Minister Asman Abnur (left), briefs journalists Wednesday (23/5/2018) at the State Palace in Jakarta. The President announced the government’s holiday bonus allocation for state employees and retirees to show its appreciation for their services.

JAKARTA, KOMPAS — Non-permanent or contract employees at government offices, both in central and regional administrations, will not receive Idul Fitri allowances as there is no regulation on the issue.

The Bureaucratic Reform Ministry communication and public information head Herman Suryatman in Jakarta on Thursday (24/5/2018) said in the prevailing regulation there is a stipulation on the Idul Fitri allowance (THR) for non-permanent employees. Previously, President Joko “Jokowi” Widodo said the government has disbursed Rp 35.76 trillion for THR for officials and retired officials. The budget increased 68.9 percent compared to the allocation the previous year.

Home Ministry regional finance director general Syarifuddin said the decision makers in the region should follow the law on budgetary spending. “All expenditure must have legal basis,” he said. In the Government Regulation No. 18/2018 on the second amendment of No. 19/2016 on the allowance for civil servants, Indonesian Military (TNI) personnel, the police, state officials and retired officials, there is no mention about non-permanent or contract employees.

Therefore, Bekasi City regional asset and budget head Imam Yahdi said considering there is no legal basis the Bekasi City administration did not allocate a THR allowance for non-permanent employees. South Tangerang Deputy Mayor Benyamin Davnie said the same thing.

The Jakarta administration said it would follow the policy of the central government. Jakarta Deputy Governor Sandiaga Uno said amid a slowing economy and declining purchasing power, paying the THR allowance would help drive the economy at the grassroots level.

Business under pressure

In Central Java, business players are committed to paying the THR allowance to employees, although business is under pressure following the depreciation of the rupiah. Some businesses are unable to pay the THR allowance in accordance with regulations.

Central Java Indonesian Employers Association (Apindo) chairman Frans Kongi said there are several businesses that do not pay the THR allowance in accordance to regulation but rather based on consensus with employees. “Economic pressure due to the falling rupiah puts pressure on industry. Moreover, almost 70 percent of raw materials for the manufacturing and textile industry are imported. The export value cannot offset the increasing cost due to the rupiah’s depreciation,” Kong said.

Semarang Independent Workers Union (SPI) chairman Waluyo said his side called on business to pay the THR allowance on time. The allowance will at least lighten the burden of the workers.

In East Java, the union of workers and employers association and the Surabaya Legal Aid Institute (LBH) on Friday will open an THR allowance desk. In the past two years, the number of complaints from workers that do not receive the allowance has declined.

According to the desk’s record, in 2016 there were 4,404 complaints from workers saying they did not receive the THR allowance. They come from 28 companies in Surabaya, Sidoarjo, Gresik, Mojokerto, Pasuruan and Tulungagung. In 2017, the number declined to 1,867 people. “We opened a desk to prevent violations,” said LBH public lawyer assistant Habibus Shalihin.

In North Sumatra, the local manpower office opened nine desks. However, there were no companies proposing for a delay in the payment of the THR allowance so far.

(MHD/NDY/IRE/KYR/PIN/WHO/DKA/NSA/BRO/ETA)