Labor Demands UMP 2024 To Increase 15 Percent, DKI Provincial Government Waits For Wage PP Revision

Illustration of workers holding demonstrations to fight for wage increases. (Between)

JAKARTA - Head of the DKI Jakarta Manpower, Transmigration and Energy Agency, Hari Nugroho, responded to demands from labor groups who want an increase of 15 percent over the DKI Jakarta provincial minimum wage (UMP).

Hari explained that until now the DKI Provincial Government is still waiting for the central government to issue a revision of Government Regulation Number 36 of 2021 concerning Wages.

This regulation, said Hari, is used as the basis for the formulation of the annual wage increase by the government and the wage council in each region.

"In connection with the stipulation of the Perpu in Lieu of Law Number 2 of 2022 concerning Job Creation into Law through Law Number 6 of 2023 by the Constitutional Court, the implementation rules regulated in PP 36/2021 need to be revised and are currently still in process at the Ministry of Manpower," Hari told reporters, Wednesday, November 1.

Hari explained, there are three components that are formulae for determining the value of the UMP, namely inflation, economic growth, and the index regulated in the wage regulation.

"So, we will look at the components that are the basis for the regulation on the determination of the UMP, namely the results of the revision of PP 36/2021," explained Hari.

In 2023, Jakarta will have a UMP of IDR 4.9 million. If the demands of the workers are met, the minimum wage of Jakarta workers will be IDR 5.6 million. Even today, we cannot confirm whether to meet these demands or not.

"Regarding the demands of workers/laborers, we will see whether the numbers in these components are included in the demands of workers/laborers in accordance with the components above," he continued.

Previously, the President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal asked all local governments to increase the minimum wage by 15 percent.

"We urge the government, including the Ministry of Manpower and all governors, regents, and mayors, to increase the minimum wage for UMK, UMR, or UMP 2024 by 15 percent, or at least 10 percent," said Said Iqbal, some time ago.

Said Iqbal explained that the material was determined based on the results of a survey by the Labor Party and KSPI which showed that the living component (KHL) would increase by an average of 15 percent.

"If we look at the increase in rice and other food prices, it's 15 percent. Just look at BPS, indeed public inflation is 2.8 percent, but food inflation is 15 percent," he said.