Indonesia – Apindo: 13th Salary Effect Starts to Show

• Jun 18, 2018

TEMPO.CO, Jakarta – Head of the Indonesian Employers Association (Apindo) Hariyadi Sukamdani, said that the government’s policy on the 13^th salary and Eid Al-Fitr bonus for civil servant, police, the army, and pensioners has a positive impact in local regions.

Hariyadi said that some regions known as a tourist destination have shown an increase in hotel occupancy rates. “The economic stimulus in tourism regions and homecoming destination is apparent,” Hariyadi said.

He added that hotel occupancy rate this year has increased by 10 to 15 percent compared to last year. “The rooms are on over-supply status, but the 13^thsalary and bonus have caused occupancy rate to increase,” Hariyadi explained.

An economy expert from University of Indonesia Fithra Faisal Hastiadi, predicted that the amount of money flowing into local regions during this year Eid Al-Fitr reaches up to IDR 150 trillions. The calculation was made based on the assumption that that 30 million people are returning to their hometown and spend IDR 1 to 5 million.

Fithra said that 70 percent of the expenses will be made at the destination regions. Meanwhile, the other 30 percent will be spent on the road.

Source: https://en.tempo.co/read/news/2018/06/16/056919274/Apindo-13th-Salary-Effect-Starts-to-Show