Companies cited reduced productivity and additional overtime costs. Read more at straitstimes.com.
JAKARTA – Indonesian Muslims began their five-day Hari Raya Haji holiday on Wednesday, the longest granted by the government in what critics say is a populist move by President Joko Widodo.
Businesses are also unhappy over the timing of the extended holiday’s announcement, which was made only a week earlier. Entrepreneur Sofjan Wanandi, a former chairman of the Indonesian Employers Association, said that if the extension of public holiday becomes a norm, it could put the country at a disadvantage in terms of productivity, compared with its neighbours. The Hari Raya Idul Fitri holiday in April was extended from four days to five.
About 250 textile companies will be affected by the five-day holiday, with losses estimated to be around 575 billion rupiah, he noted, adding that this is unfortunately taking place when many factories are catching up with rising production targets. He argued that it was taken in the light of the presidential election in February 2024, when Mr Widodo – while not seeking re-election – needs to stay popular as he gears up to endorse one of the contesting presidential candidates. Declining popularity would weaken the effectiveness of his endorsement.
For Ms Dini Khairani, the extra days came as a pleasant surprise as she and a few friends were planning to holiday together.
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