Apindo Against Anies Baswedan's Revision, Asks All Entrepreneurs Not To Increase UMP 5.1 Percent

JAKARTA - The Indonesian Employers' Association (Apindo) will sue DKI Jakarta Governor Anies Baswedan to the State Administrative Court (PTUN) for revising the 2022 DKI provincial minimum wage (UMP) increase of 5.1 percent.

Apindo does not accept Anies revising the amount of the UMP increase. They still want the UMP in 2022 to be 0.85 percent like Anies' decision before the UMP was revised.

Therefore, Hariyadi B. Sukmadani said that his party asked all companies in the capital city not to follow the increase in the UMP which was revised to 5.1 percent.

"We urge all companies in DKI not to make revisions from the Governor of DKI, while waiting for the final result (decision) from the PTUN," said Hariyadi on Tuesday, December 21.

Hariyadi estimates that if employers increase the UMP for their workers, like the revised UMP policy that Anies made, this will stagnate a company's production and make it difficult for novice workers.

"This will also pose a big risk for new workers because the opportunities for new workers will be difficult, so the company will choose experienced workers," said Hariyadi.

In addition to filing a lawsuit, Hariyadi also asked the Minister of Manpower Ida Fauziyah to sanction Anies.

This is because, according to him, the UMP increase of 0.85 percent was previously set according to the wage calculation formula in Government Regulation Number 36 of 2021 concerning Wages, which is a derivative rule of the Job Creation Law.

"We ask the Indonesian Ministry of Manpower to impose sanctions on regional heads who have violated the law on labor regulations, especially wages because this has the potential to create an unfavorable climate for the business world and the national economy," he stressed.

Previously, 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 Rp37,749, the 2022 UMP will be Rp4,453,935. Then, when Anies raises 5.1 percent or Rp225,667, the UMP for DKI next year will be Rp4,641,854.

The decision to increase the UMP was taken from two aspects. First, a Bank Indonesia study 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).