Kadin Says Q2 Holidays Affect Indonesia's Economic Productivity

TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) deems it crucial to carry out reforms in domestic policies, particularly related to productivity and incentives. The proposed moves are intended to address the potential economic slowdown.

"One of the main recommendations that we encourage is boosting economic productivity," said Shinta Widjaja Kamdani, Deputy Chairperson of Kadin's Coordinating Board for Human Development, Culture, and Sustainable Development, during a panel discussion in Jakarta on Thursday, June 12, 2025.

Shinta mentioned that the high number of holidays throughout the second quarter of 2025 could lead to reduced economic productivity. "We must be able to reassess the number of effective working days, as this has a significant impact," she said.

Throughout the second quarter, from April to June 2025, Indonesia had a total of 9 national holidays, including Eid al-Fitr, Easter, Vesak Day, and Eid al-Adha.

Additionally, the total collective leave during April to June 2025 amounted to 8 days.

Shinta also proposed that the government should start transitioning social aid programs into entrepreneurial programs. This aims to allow Indonesian people to become more independent and productive.

"Providing the 'fishing rod' will boost the people's productivity, as opposed to just giving 'baits,'" she stated.

The government will provide five economic stimulus packages during June-July 2025. Finance Minister Sri Mulyani Indrawati stated that the purpose of these incentives is to maintain Indonesia's economic growth in the second quarter of 2025.

"We hope that in the second quarter, economic growth can still be maintained close to 5 percent, compared to the previous weakening estimation due to global conditions," said Sri Mulyani in an official statement on Monday, June 2, 2025.

Sri Mulyani stated that the total allocated budget for the packages is Rp24.44 trillion, consisting of Rp23.59 trillion from the state budget and Rp85 billion from the non-state budget.

Sri Mulyani hopes that all of these stimuli can maintain household consumption and improve welfare amidst the global economic slowdown. "We also hope for a more rapid decline in poverty rate and unemployment through the growth we maintain," said Sri Mulyani.

Ilona Estherina contributed to the writing of this article

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