Waiting For Heru Budi To Set DKI 2024 UMP: Entrepreneurs' Proposal IDR 5 Million, Workers Want IDR 5.6 Million

Illustration of workers (ANTARA)

JAKARTA - The DKI Jakarta Provincial Government has held a Wage Council session to discuss the increase in the value of the DKI Jakarta provincial minimum wage (UMP) in 2024. The Wage Council meeting resulted in recommendations to be submitted to the Acting Governor of DKI Jakarta Heru Budi Hartono.

Later, Heru will issue a governor's decision (kepgub) to determine the minimum wage increase based on the recommendation of the Wage Council. Heru has until November 21, 2024 to inaugurate the determination of the UMP next year.

The Wage Council session which was held on Friday, November 17 at the DKI Jakarta City Hall was tough. Like in previous years, members of the Wage Council from elements of entrepreneurs disagreed with the elements of workers in recommending an increase in the UMP.

Finally, the Wage Council session produced three different recommendations. In a written statement, the Head of the DKI Jakarta Manpower, Transmigration and Energy Office Hari Nugroho explained that Jakarta UMP recommendations in 2024 from entrepreneurial elements were around Rp. 5 million.

"Members of the Wage Council of DKI Jakarta Province, elements of the Entrepreneurs Organization, propose the amount of the DKI Jakarta UMP value in 2024 using a formula regulated in Government Regulation (PP) Number 51 of 2023 concerning Wages using alpha 0.20 of DKI Jakarta's economic growth, so that the DKI Jakarta UMP in 2024 will be IDR 5,043,068," Hari said in his statement, quoted on Sunday, November 19.

Meanwhile, the labor group gave a recommendation for the value of the 2024 UMP of IDR 5.6 million. They did not use the formula (PP) Number 51 of 2023 which became a reference for the central government.

"Members of the Wage Council of DKI Jakarta Province, elements of trade unions/labor unions, proposed an increase in the value of the DKI Jakarta UMP in 2024 by 15 percent, with details using the DKI Jakarta Inflation formula of 1.89 percent, plus DKI Jakarta's economic growth of 4.96 percent, plus a certain index of 8.15 percent to Rp5,637,068," explained Hari.

Then, the government element also provides recommendations that still refer to PP Number 51 of 2023. However, the DKI Provincial Government uses alpha or a calculation limit of a little more than a group of entrepreneurs.

"Members of the Wage Council of DKI Jakarta Province, elements of the Government, propose the amount of the value of the DKI Jakarta UML in 2024 based on the formula regulated in Government Regulation Number 51 of 2023 using alpha 0.30 of DKI Jakarta's Economic Growth so that the DKI Jakarta UMP in 2024 will be IDR 5,067,381," he explained.

For information, the DKI Jakarta UMP in 2023 is IDR 4.9 million. Jakarta's UMP in 2023 increased by 5.6 percent from the 2022 UMP which amounted to IDR 4.6 million.