Doing Business

5 Important Points You Need to Know in Doing Business during Ramadhan time in Indonesia

Trường Lăng

September 24, 2019

Ramadhan is an important time in Indonesia. Ramadhan falls on April or May and ends after one month, but it is changing over the years. This month means the Holy Month where the Muslims do not eat, drink or smoke from dawn to dusk.
This month affects business in Indonesia, there are 5 points that you need to know:

Working hour

Yes, Ramadhan changes the working hours in Indonesia. Government Institutions in Indonesia have shorter business hours during Ramadhan, they open at 08:00 AM and close at 3:00 PM. For the private sector, usually, the working hours during Ramadhan change to 08:00 AM to 4:30 PM from Monday to Friday. Both private and government usually have a different break in this Holy Month. From Monday to Thursday, the break is from only 12:00 PM – 12:30 PM and for Friday is 11:30 AM to 1 PM.
As productivity might also be affected, business owners should plan well in this Holy Month. As a business owner, you should assign important tasks in the morning hours to maintain the productivity of the workers.

Tunjangan Hari Raya (THR)

Tunjangan Hari Raya is the obligatory religious holiday allowance that regulated by the Indonesian government. In Ramadhan, employees will receive their 13th salary or called THR. The THR amount is a one-time salary and should be paid at least seven days before the beginning of holidays. It is very important to note that if the employer in Indonesia cannot pay THR, they will have to pay a penalty of 5% for the delay of the THR payment.

The importance of Buka Bersama – to break the fast together

Buka Bersama or break the fast together is a tradition for many Indonesians to arrange meet-ups. Mostly this is the time where they they create College or High School Reunion. This is also a very ideal time to build relationships with your Indonesian colleagues, business partners or clients. To show your respect to the relationship. Usually, companies hold Buka Bersama for its employees to bond and share the togetherness.

Hari Raya Idul Fitri

This is the peak of Holy Month, where Muslims celebrate the end of it with praying and visiting families. In Indonesia, there will be two official holidays and also official collective leave from Government. So, in total, a full week off for offices and institutions can be expected.

The perfect time to hire in Indonesia

After receiving their 13th salary, many Indonesians are eager to change jobs. This is the perfect time to bring new talent to do recruitment campaign and bring new talent to your company.
If you want to know clearly the procedure to set up your company in Indonesia, contact us!

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