Revision Of The 2022 DKI Provincial Minimum Wage Increase: Praised By Labors, Protested By Employers

JAKARTA - DKI Jakarta Governor Anies Baswedan revised the increase in the Jakarta provincial minimum wage (UMP) in 2022 from 0.85 percent initially to 5.1 percent.

In 2021, DKI's UMP is IDR 4.416.186. If it increases by 0.85 percent or IDR 37.749, the 2022 UMP will become IDR 4.453.935. Then, when Anies raises 5.1 percent or IDR 225.667, the UMP for DKI next year will be IDR 4.641.854.

Anies explained that the decision to increase the UMP was taken from two aspects. First, a Bank Indonesia study, which states that Indonesia's economic growth projection in 2022 will reach 4.7 percent to 5.5 percent and inflation will be controlled at 3 percent.

Second, this decision is based on a review and re-discussion with all relevant stakeholders.

The increase in the amount of the UMP was also carried out after Anies' efforts had previously sent a letter to the Indonesian Minister of Manpower regarding the Proposal to Review the 2022 Provincial Minimum Wage Determination Formula (UMP).

"We assess this 5.1 percent increase as feasibility for workers and still affordable for entrepreneurs. This will also increase people's purchasing power," said Anies on Saturday, December 18.

Anies said that the 5.1 percent increase in the UMP is an appreciation for workers and also enthusiasm for the stretching of the economy and the business world.

“With an increase of IDR 225 thousand per month, our brothers and workers can use it as an addition to their daily needs. What is more important is that through this decent UMP increase, we hope that the purchasing power of the people or workers will not decrease," Anies explained.

Praised by labors

The revision of the DKI UMP increase clearly makes the workers happy. The rallies that were held several times in front of Anies' office, DKI Jakarta City Hall were not in vain. The President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal appreciated this decision.

"Mr. Anies is very smart in calculating numbers based on existing laws and also based on calculations of a sense of justice, as well as economic calculations. So the steps taken by the Governor of DKI Jakarta, workers in DKI Jakarta and throughout Indonesia appreciate it," Iqbal said in his statement on the YouTube account Bicaralah Buruh.

protested by businessmen

The Indonesian Employers' Association (Apindo) protested Anies' policy of revising the increase in the 2022 UMP which was originally only 0.85 percent to 5.1 percent. Apindo assessed that Anies had violated the rules.

Deputy Chairperson of the DKI Jakarta Apindo DPP, Nurjaman said the regulation in question was Government Regulation (PP) Number 36 of 2021 concerning Wages. Nurjaman admitted that he could not understand why the DKI Jakarta Governor's Decree Number 1395 regarding the DKI Jakarta UMP in 2022 was revised.

"The Governor has clearly changed (the amount of the 2022 UMP increase) and is there a regulation? Can we violate the Governor's Regulation or not? If the Governor violates the PP? We can also violate the Gubernatorial Regulation, please. Don't teach us to violate the regulation," said Nurjaman.

Nurjaman said Apindo hoped that Anies Baswedan could refrain from revising the increase in the amount of the DKI Jakarta UMP in 2022. However, if it could not be canceled, his party would like to take legal action so that the decision is annulled.

"If he doesn't, we won't stay with him. We will take legal action, including filing a complaint with the Administrative Court," he said.

According to Nurjaman, the impact of the revised 2022 DKI Jakarta UMP increase is very large. Because this can trigger other provinces to also change it. "We are both uncomfortable. So far, we have been hit by a pandemic and now we have been hit by a revised wage increase," he said.