As Eid al-Fitr approaches, discussions on Religious Holiday Allowances or Tunjangan Hari Raya (“THR”) resurface, particularly regarding online drivers and couriers. While THR for formal employees is a legal obligation under labor law, gig workers like online drivers are not entitled to it. In response to this, the government issued a recommendation through Minister of…
On 20 May 2024, the Indonesian government introduced Regulation Number 21 of 2024 (“GR 21/2024”), an amendment to existing Regulation Number 25 of 2020 regarding the implementation of public housing savings, known as Tabungan Perumahan Rakyat (“Tapera”). The program mandates contributions to Tapera for all workers, including those in private enterprises and self-employed individuals, leading…
Understanding Religious Holiday Allowances Over quite many years, the Indonesian government has mandated that employers provide religious holiday allowances (Tunjangan Hari Raya – “THR”) to their employees based on their respective religions. The compulsory provision of religious holiday allowances is outlined in several regulations concerning employment matters, including Law Number 13 of 2003 concerning Employment,…
Indonesia’s employment landscape is marked by a dynamic interplay of socio-economic factors, where social security and employee welfare emerge as pivotal elements. Social security essentially refers to protective measures provided by the state to ensure the well-being of its workforce, encompassing aspects such as health insurance, retirement benefits and workplace safety. Concurrently, employee welfare delves…
The mining industry, as a vital pillar of Indonesia’s economy, has played a significant role, primarily in terms of generating revenue and creating employment. However, despite its prominent role in the economy, this industry often faces challenges that hinder business progress, one of which is the roadblock issue in mining activities. The rise of roadblock…
Nowadays, business is no longer solely about financial figures such as revenue growth, profit and loss. Instead, in this increasingly complex modern era, the perspective has shifted, where sustainability and social responsibility have become crucial elements in assessing the success of a business. In other words, businesses today must be more than just profit-generating entities;…
As is known, the consequences of climate change have impacted people’s lives. To address climate change and its impacts, the Government of Indonesia has committed to contributing to the reduction of Greenhouse Gas (“GHG”) emissions. In measuring climate change mitigation efforts, carbon serves as an important indicator which is reflected in the Nationally Determined Contributions…
We are delighted to inform you that our Senior Partner, Aditya Kesha Wijayanto, was present as a speaker at the Petromindo Conference on 24 May 2023. On that occasion, he spoke about Legal Insight with the theme “Project Finance in the Power Plant Industry”. The following are the main points of the discussion: A. General…
What is Employee Fraud? From a company perspective, employee fraud is commonly understood as a deliberate fabrication, which causes the victim (the employer) to suffer economic loss while allowing the perpetrator (the employee) to gain an illegitimate benefit. Common examples of employee fraud range from misappropriation of assets (e.g., stealing inventory, or obtaining fraudulent payments)…
What is Religious Holiday Allowance? Religious Holiday Allowance or Tunjangan Hari Raya (“THR”) is a mandatory non-wage income or employee’s income outside of the basic wages that must be paid by the company to employees ahead of religious holidays. THR is given by the company to employees in accordance with their respective religious holidays. Eligibility…