Develop a plan until THR's "Hilal" arrives

The term "The Hilal THR has not been seen yet" is often a joke ahead of the holidays. This is a metaphor for those who are looking forward to holiday allowances or THR. Vina Aprilia (26), a private employee in Tangerang, Banten, West Java, usually uses THR to finance her needs while celebrating Eid al-Fitr with her family in Rangkasbitung, Banten.

The money was allocated for various purposes, from buying food to funds for greetings for his nephew. Moreover, prices of basic necessities ahead of the holidays are predicted to soar high. "Therefore, THR is really needed so that our monthly salary is not disturbed," he said.

To avoid going overboard, Vina has been measuring her expenses from the start. For example, she allocates around 35 percent of her Eid al-Fitr allowance for food and cakes, while around 30 percent of the allowance goes towards greetings stickers. "The remaining money is saved," she said.

Vina has been finding ways to manage the costs of purchasing basic necessities without burdening herself. She does so by participating in a savings scheme called "arisan." Vina and her relatives have been holding an arisan for 10 months prior to Eid al-Fitr, where each person contributes around Rp 150,000 per month.

The funds will be used to buy meat and various basic needs for Lebaran. "So, our THR (holiday bonus) won't be eroded by the skyrocketing meat prices," said Vina.

According to him, the existence of THR (religious holiday allowance) is very important, considering that relying solely on salaries will certainly affect future income.

"Do not let our lives become harder after Eid due to overspending during the holiday," he said.

Also read: Measuring the Effects of THR on the National Economy

Fortunately, the company where he works never neglects to provide THR (holiday bonus).

"Usually two weeks before Eid al-Fitr, THR (holiday allowance) has already been disbursed," said Vina who has been working for the company for the last five years.

Similarly, Purika Ayu Tirani (29), an employee of a local government-owned enterprise in Jakarta, has also allocated her Eid al-Fitr bonus. Even though she does not celebrate the holiday, her workplace still distributes the annual bonus.

"The company where I work does provide two holiday bonuses (THR) each year, during Idul Fitri and Christmas," said a resident of Jagakarsa, South Jakarta.

Purika also allocates her THR funds for various purposes. For example, funds are used to purchase gift baskets (hampers) for colleagues, friends, and neighbors who celebrate Idul Fitri. According to her, this tradition is expected to strengthen relationships even though she does not celebrate Idul Fitri.

During Ramadan, Purika often joins his friends for the breaking of the fast (bukber) events. These occasions are a part of socializing that certainly requires a significant amount of money.

"THR money is used to meet these needs," he said.

Basically, from the amount of THR (holiday allowance) received, Purika always allocates around 50 percent of the funds for savings and 10 percent for tithe.

According to him, THR is highly necessary considering that the prices of daily necessities usually increase leading up to Idul Fitri compared to normal days. If there is no THR, it could certainly disrupt the allocation of funds for routine expenses in the following months.

"Let's not allow ourselves to borrow money from online loan application services to fulfill our needs in the following month after Eid al-Fitr just because our expenses have increased. If this happens, it will undoubtedly worsen the economy," said the second child among four siblings.

"Previously, when I used to work, I only focused on my own family, but now I also have to focus on my husband's family," she said.

Therefore, THR (holiday bonus) should be managed in a way that does not go “bust” after the holiday season. According to the plan, THR will be used to buy necessities such as clothes, food, and to give temple greetings to nieces/nephews.

"It is hoped that with the holiday bonus (THR), this year's Idul Fitri celebration can be more festive," he said.

Amidst the euphoria of receiving THR (annual bonus), the challenge of price increase seems to be ready to confront. The price of basic necessities soared, such as the price of rice which gradually increased in the past two months. Market operations have not been able to suppress the price of rice in the market.

Hambali, a rice trader in Rawajati Market, Pancoran, predicts that rice prices will increase ahead of Eid al-Fitr. "The possibility of the cheapest rice price at the moment is around Rp 13,000 per liter," he said.

This situation has made many people hold off from buying rice. He predicts that the price of rice will drop when the harvest season arrives, specifically after the Lebaran holiday.

Not only rice, but egg prices are also skyrocketing. At the retail level, egg prices are around Rp 32,000 per kg.

David, an egg vendor in Pancoran, South Jakarta, said that the price of eggs has never gone down since the beginning of fasting season. "The price of eggs is already expensive at the farmer level," said David.

Also read: Measuring the Impact of 100 Percent THR Disbursement on Economic Growth

Besides the rise in feed prices, the price increase of eggs is also due to limited supply from farmers.

"David stated that he hopes that after the Eid al-Fitr holiday, the price of chicken eggs can stabilize again."

Leverage purchasing power

An economic observer from Sriwijaya University, Muhammad Ichsan Hadjri, believes that the existence of THR will increase economic growth. Moreover, a number of government policies have made THR disbursement fuller compared to previous years.

Civil servants (ASN) and retirees will receive their full THR, just like private employees who must be given THR equal to at least one month's salary and cannot be paid in installments. The distribution of THR is expected to boost the purchasing power of the public amidst the skyrocketing prices of basic necessities.

In addition, when Eid al-Fitr arrives, many citizens will return to their hometowns. This tradition will certainly have an impact on the flow of holiday allowances to remote villages.

"Hopefully, economic growth will not only be concentrated in urban areas, but can also be felt in rural areas," he said.

With this scheme, it is hoped that the government's target to achieve economic growth of up to 5.2 percent can be realized.

”Because basically the contribution of public consumption to economic growth is quite large. "The impact is, when people's purchasing power increases, economic growth will also be leveraged," said Ichsan.

However, he urges the public to spend their Eid al-Fitr bonus wisely. Even though the amount of bonus this year is higher, it is not wrong to save 10 to 20 percent of it.

"As we do not know what will happen in the future, especially as we are still in a government transition phase," said Ichsan.

Previously, Head of Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu stated that given the uncertain economic conditions this year, efforts must be made to boost the purchasing power of the public to support national economic growth.

The government's confidence seems to be justified. Looking at 2023, the government only provided THR (holiday bonus) for civil servants and TNI-Polri members as well as permanent performance benefits at fifty percent. The effect was able to boost the second quarter 2023 economic growth to touch 5.17 percent. During that period, household consumption performance also managed to increase by up to 5.22 percent, mainly due to increased purchasing activities by the community during the arrival of Ramadan and Eid al-Fitr.

Although the amount of the year-end bonus (THR) will be higher this year, it wouldn't hurt to set aside 10 to 20 percent of it for savings.

This year, the government disbursed all components of THIR and 13th salary in full or 100 percent. All categories of ASN were recipients. With the full amount received for THIR and 13th salary, there is potential for more spending. This will certainly have a significant impact on the national economy (Kompas.id, March 20, 2024).

The existence of THR is expected not only to boost buying power, but also to add to the joy of meeting with family.