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Indonesia mulls providing companies soft loans to pay Idul Fitri bonus

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JAKARTA (The Jakarta Post/ANN): The Industry Ministry is discussing the possibility of providing businesses with soft loans to enable them to pay Idul Fitri holiday bonuses (THR) as the economic downturn is forcing companies to withhold or cut the bonus payment.

The ministry is in discussion with the central bank and the Financial Services Authority over the matter, Minister Agus Gumiwang Kartasasmita told journalists during an online press briefing on Tuesday .

The Covid-19 pandemic has disrupted business activity as consumers stay at home to curb the virus spread, resulting in weakening demand. Companies across the country, mainly those operating in the hospitality sector, have furloughed or laid-off employees. While some companies have struck a deal with their workers or unions to pay their THR in instalments, Agus said companies that could not come to an agreement with their workers could apply for the loans.

Previously, Coordinating Economic Minister Airlangga Hartarto reminded businesses that they were obligated pay THR, despite the economic pressures brought about by the pandemic.

 

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