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Jakarta Post

Govt nixes Idul Fitri bonus for SOE directors, commissioners

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, April 22, 2020   /   12:17 pm
Govt nixes Idul Fitri bonus for SOE directors, commissioners The State-Owned Enterprises Ministry is located on Jl. Medan Merdeka Selatan in Central Jakarta. (bumn.go.id/-)

The executive directors and commissioners of 110 state-owned enterprises (SOEs) will not get receive their holiday bonuses (THR) for Idul Fitri holiday this year, the government has decided, in order to minimize the impacts of the coronavirus epidemic on the Indonesian economy.

The SOEs Ministry has instead encouraged the companies to donate the funds intended for the executives' THRs to COVID-19 relief efforts.

The companies subject to the decision include power company PT Perusahaan Listrik Negara (PLN), Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN), as well as the State Logistics Agency (Bulog) and forestry firm Perhutani.

“We encourage state-owned enterprises to apply cost allocation to channel the THR into activities or donations related to COVID-19 relief efforts,” the ministry said in a letter signed by SOEs Minister Erick Thohir on April 17. The ministry also urged the SOEs to apply the same policy on their subsidiaries.

Read also: State firms to focus on ‘slimming down’ while avoiding layoffs

The letter also instructs SOEs directors to report the policy implementation to the deputy minister that oversees their company.

Ministerial aide Arya Sinulingga earlier said on April 7 that all employees  of state-owned companies, excluding executives, would receive their THRs this year, as reported by kompas.com.

The policy is in keeping with the government’s decision to pay holiday bonuses to all civil servants at the echelon III level and below, but not high-ranking officials, Finance Minister Sri Mulyani Indrawati wrote on her Instagram page.

“As a form of concern regarding the COVID-19 pandemic, government officials from the President, Vice President and other [senior] officials, along with echelon I and II civil servants and other functional staff, will not receive their THR,” she posted.