Indonesian Workers' Alliance Rejects JHT Tax, Citing Retirement Needs
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- The Indonesian Workers' Alliance in Central Java urges the government to abolish taxes on the Old Age Security (JHT) savings.
- Alliance chairman Mulyono stressed that JHT funds are for living after retirement, not for frivolous spending.
- The group advocates for the removal of taxes on these essential retirement savings.
Workers in Central Java, Indonesia, are strongly opposing the imposition of taxes on their Old Age Security (JHT) savings. The Congress of the Indonesian Workers' Union Alliance (KASBI) in Central Java is leading the charge, demanding the government scrap these taxes.
Mulyono, the chairman of KASBI Central Java, articulated the workers' position clearly. He emphasized that JHT funds are specifically designated for ensuring a basic standard of living after retirement. Mulyono argued vehemently against the idea that these crucial savings should be subject to taxation, viewing it as a misallocation of resources meant for post-work survival.
The alliance's stance highlights a significant concern among Indonesian laborers regarding the security and accessibility of their retirement funds. They believe that taxing JHT is counterproductive and undermines the very purpose of the program, which is to provide a financial safety net for elderly citizens.
Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.