As Eid al-Fitr approaches, Indonesians prepare to receive Tunjangan Hari Raya (THR), an additional income that supports holiday expenses. A study by Jakpat in 2024 reveals that 59 percent of respondents depend on THR during Ramadan, with most spending directed towards essential needs like food, with 80 percent of participants also dedicating part of their funds to zakat.
Young professionals receiving their first THR are reminded to practice prudent financial management. Bank DBS Indonesia offers guidelines to help allocate THR effectively, urging recipients to first reassess their monthly expenses. Recognizing the current economic conditions, the bank emphasizes the importance of financial stability and planning.
Within these guidelines, Bank DBS Indonesia advises setting aside funds for zakat fitrah and essential Ramadan expenses first, then applying a budgeting strategy that allocates 50 percent to necessities, 30 percent to debts and savings, and 20 percent to discretionary spending. With thoughtful planning, THR usage can be optimized, enhancing financial health.
Bank DBS Indonesia's digibank application aids customers with features like expense categorization and payment flexibility through its Pay Later option. This tool allows for better financial management, including the facilitation of debt repayment using the snowball method.
Furthermore, the bank underlines the need for establishing emergency funds and exploring investment opportunities using a portion of the THR. With over 70 mutual fund products and 130 bond options available via the digibank app, investment is stress-free and accessible.
Apart from investments, Bank DBS Indonesia, alongside Manulife Indonesia, offers insurance products, ensuring coverage in critical areas. Travel protection through Chubb Smart Travel Shield is also highlighted for individuals traveling during the holiday.
The bank stresses the importance of transaction security during this period, as digital transactions increase. "Bank DBS Indonesia believes that enjoying Ramadan and Lebaran with peace of mind starts with good financial planning," says Melfrida Gultom, PT Bank DBS Indonesia's Consumer Banking Director. She acknowledges the need for wise spending to tackle financial challenges post-holidays.
Overall, Bank DBS Indonesia's comprehensive approach aims to educate consumers on managing THR, ensuring secure financial practices, and utilizing banking solutions that simplify processes, fostering a mindset of "Live more, Bank less."