Determination Of UMP Referring To PP 51/2023, Ketum Apindo: Respect Provisions, Respond With Cold Head

Chairman of Apindo Shinta W Kamdani. (Photo: Doc. VOI)

JAKARTA - The Indonesian Employers' Association (Apindo) responded to the determination of the provincial minimum wage (UMP) based on Government Regulation (PP) Number 51 of 2023.

Apindo assessed that the determination of this year's minimum wage had gone well because it involved employers, trade unions, and local government academics, accompanied by a long time to reach an agreement.

"We hope that all parties respond to this with a cool head, respecting this provision," said Apindo Chairman Shinta W. Kamdani," in a written statement received by VOI, Wednesday, November 22.

Because, Shinta assessed, one of the enthusiasms of PP Number 51 of 2023 is to provide legal certainty in trying and investing in Indonesia.

Shinta said, one of the strategic functions of the minimum wage is national economic stability.

In accordance with this function, he assessed that the determination of wages must refer to investment decision factors, long-term economic structural reforms, and the form of the state's role in providing protection to workers.

Meanwhile, Apindo Head of Manpower Bob Azam assessed that PP Number 51 of 2023 was able to support business sustainability while still considering labor justice.

Therefore, Bob hopes that local governments can respect and follow the results of the 2024 UMP determination based on the regulation.

According to Bob, the process of calculating and determining PP Number 51 of 2023 has given wider authority to the regional wage council in providing input on policymaking.

In addition, Apindo emphasized that the central and regional wage council needs to be strengthened, according to their important role in communication, supervision, and guidance in the implementation of the Wage PP.

"For the benefit of the national and regional economy, the increase in wages cannot be evenly hit for all regions," he said.

This, continued Bob, has been strictly regulated in PP Number 51 of 2023 by referring to the new formula, which takes into account inflation, economic growth, BPS data, and real conditions for consumption and economic growth in each region.

Furthermore, Bob assessed, determining certain indexes for economic growth recommended by the wage council must take into account the economic situation and labor conditions in the area.

Thus, it does not cause turmoil in industrial relations which are feared to disrupt employment.

Bob did not deny that the welfare of workers was also part of Apindo's struggle.

He admitted that he had made efforts through expanding the business sector, training, increasing productivity, social dialogue, including the formation of a Collective Work Agreement (PKB) in companies.

The bipartite dialogue between workers and employers and deliberations for consensus is something Apindo always encourages.

Then, there is a social dialogue so that PP No. 51 of 2023 can be carried out as well as possible in the company, and productivity accompanied by wage increases is essential for the Indonesian economy.