The Indonesian Ombudsman (ORI) has warned the Ministry of Manpower and local governments against neglecting their legal obligations to fully and timely pay Eid al-Fitr bonuses (THR) to workers. This warning comes ahead of the deadline set for April 2, 2026, where Minister of Manpower Yasserly emphasized the necessity for companies that have not fully paid or have opted for installment payments to settle their dues.
In statements made in Jakarta, Ombudsman member Robert Na Indy Gawing noted that monitoring results conducted by the Ombudsman in 11 provinces during March 2026 revealed multiple issues related to policies, implementation, and complaint management.
Details of the Issue
Robert clarified that the issues include weak regulatory tools, as some laws still exist in the form of ministerial circulars (SE) with limited binding force. He also pointed out the lack of coordination between labor laws and licensing laws, which hinders the effective enforcement of penalties.
These issues are particularly evident in areas with high industrial density on the island of Java, where some companies are failing to comply with timely bonus payments. He also noted the absence of standard operating procedures (SOPs) that would regulate the process of addressing violations, leading to solutions being dependent on individual assessments.
Background & Context
Historically, there have been recurring issues related to bonus payments in Indonesia, with the country experiencing numerous complaints about delayed payments or incomplete disbursements. Reports indicate that these issues have persisted since 2023, with 652 complaints recorded concerning mismanagement in public service delivery.
In 2026, an additional 1,461 new complaints were logged, suggesting that the situation could worsen if swift action is not taken. These circumstances require the government to enhance oversight and continuously assess the situation to ensure that all complaints related to bonuses are addressed.
Impact & Consequences
These issues are of significant importance, as they affect labor rights and lead to instability in the labor market. Failure to pay bonuses fully and on time can deteriorate relations between workers and employers, which may impact productivity and morale in workplaces.
Moreover, non-compliance with laws could result in a loss of trust in the government and the authorities responsible for regulating the labor market, negatively reflecting on the national economy as a whole.
Regional Significance
While this issue may seem confined to Indonesia, there are lessons that Arab countries can learn. Labor rights are a global concern, and many Arab nations face similar challenges in enforcing labor-related laws. Strengthening labor rights and ensuring timely payment of bonuses can contribute to improving the work environment and increasing productivity.
In conclusion, the Indonesian government must take serious steps to address these issues, including improving policies and enhancing oversight to ensure labor rights are upheld. Achieving administrative and economic justice for workers is essential to ensuring community and economic stability.