Jakarta, Indonesia Sentinel — Indonesia’s Ministry of Finance (Kemenkeu) has started disbursing the annual holiday bonuses (THR) for civil servants, including government employees, police officers, and military personnel, beginning Monday (March 17). The payments are set to be distributed 14 days before Eid al-Fitr as mandated by President Prabowo Subianto.
Deputy Finance Minister Suahasil Nazara announced the policy during a press conference at the Ministry of Finance on Thursday (March 13). “The THR payments will be made two weeks before Eid and will begin disbursement on March 17, 2025,” Nazara stated.
The holiday bonus payments are regulated under Government Regulation (PP) No. 11 of 2025, which also covers the 13th-month salary for state officials.
The recipients of this financial assistance include civil servants (PNS), government employees under contract (PPPK), members of the Indonesian National Armed Forces (TNI), the National Police (Polri), and retirees.
Holiday Bonuses for State Officials
State officials, including the president, vice president, ministers, and members of the House of Representatives (DPR), are also eligible for THR and 13th-month salary payments.
This policy is outlined in Minister of Finance Regulation No. 23 of 2025, which provides technical guidelines for disbursing holiday bonuses and additional salaries for state officials, retirees, pension recipients, and beneficiaries whose payments are sourced from the state budget (APBN).
The regulation states that state officials fall under the category of eligible recipients, as stipulated in Article 3, Section 1.
“The state apparatus entitled to THR and 13th-month salaries, as referred to in Article 2(a), includes: a. Civil Servants and Civil Servant Candidates; b. Government Employees under Contract (PPPK); c. Indonesian National Armed Forces Personnel; d. Members of the National Police; and e. State Officials,” the regulation states.
Components of the 2025 THR Payments
President Prabowo confirmed that this year’s THR payments would consist of a base salary, attached allowances, and a performance bonus. Retirees will receive THR payments consisting of a base pension, family allowance, food allowance, and additional benefits.
According to Article 9 of PP No. 11 of 2025, the THR for civil servants will include:
- Base salary
- Family allowance
- Food allowance
- Position allowance or general allowance
- Performance-based incentives
The exact amount of the THR payments will depend on each individual’s rank, position, and classification, meaning the payouts will vary among employees.
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Government Budget Allocation
Regarding the Holiday Bonuses, The government has allocated Rp49.9 trillion ($3.2 billion) for THR payments to both central and regional government employees.
“The total budget for the 2025 THR stands at Rp49.9 trillion, with Rp17.7 trillion allocated for central government employees and TNI personnel, Rp12.45 trillion for retirees, and Rp19.3 trillion for regional government employees,” Nazara explained, as reported by Kumparan.
Additionally, the government has confirmed that THR payments will be exempt from income tax (PPh). “There will be no deductions, contributions, or income tax applied; the government will cover all applicable taxes,” he added.
Exemptions from THR Payments
However, not all civil servants are eligible for THR payments. According to Article 8 of Minister of Finance Regulation No. 23 of 2025, THR and 13th-month salary payments will not be granted to those who:
- Are on unpaid leave or an equivalent status.
- Are assigned outside government institutions, either domestically or abroad, where their salaries are paid by the institution to which they are assigned.
The Indonesian government’s timely distribution of THR aims to provide financial support to public servants and retirees while boosting household spending ahead of the Eid al-Fitr holiday.
(Raidi/Agung)
