Indonesia has five primary religions, each with its own set of holidays to commemorate. Foreign investors may be surprised by the impact on their firm. Don't be afraid; it's not necessarily a negative thing. As a business owner, you must grasp the significance of each holiday.
Here are a few crucial points to consider:
1. Indonesia has collective days for religious holidays. This means that instead of taking one day off, it can be extended to two or three. Especially if the date is on a weekend. Eid al-Fitr is normally a week-long holiday.
2. Bali's Hindu majority observes many religious events, including Nyepi, Galungan, Kuningan, and Melasti, building up to major holidays that may affect employee absence. They must participate in these ceremonies since they are so significant.
3. Expect decreased overall productivity as well as delays in workflow, delivery, and other processes. Religious holidays are highly anticipated and require weeks or months of preparation. This is especially true as people travel to their hometowns nationwide.
4. If you're in the hospitality industry, this will be a profitable time as many tourists visit Bali during the holidays. Expect a huge increase of visitors, necessitating a team effort. Prepare a budget for paying workers who work on their scheduled days off.
5. The government requires employers to pay THR (Tunjangan Hari Raya) or Religious Holiday Allowance to their employees at a maximum of D-7 before the date.
If you are a business owner and need help on this topic, please contact us at www.panduconsultancy.com.