During The Pandemic Period, KSPI Still Wants An Increase In The Minimum Wage In 2021

JAKARTA - President of the Confederation of Indonesian Workers Unions (KSPI) Said Iqbal demands that the minimum wage in 2021 continues to increase during the COVID-19 pandemic. The desired increase in minimum wages is 8 percent.

Said disagrees with employers who want the obligation to raise wages to be eliminated this year because economic growth is at a disadvantage. This is because similar economic conditions have occurred during the monetary crises of 1998, 1999 and 2000.

"There is no reason the minimum wage from 2020 to 2021 will not increase because the economic growth is minus. When Indonesia experienced the 1998 crisis, where economic growth was minus around 17 percent, the minimum wage in DKI Jakarta at that time continued to rise, even reaching 16 percent. , "Said Iqbal said in a written statement on Saturday, October 18.

To be clearer, the increase in the minimum wage in Jakarta from 1998 to 1999 continued to increase by around 16 percent, whereas the economic growth in 1998 was minus 17.49 percent.

Likewise with the 1999 to 2000 minimum wages, the minimum wages in Jakarta continued to increase by around 23.8 percent, whereas the economic growth in 1999 was minus 0.29 percent.

Said Iqbal said, if the minimum wage in 2021 is not raised, the workers will be even more furious. Because, they are still hot in facing rejection of the Job Creation Law.

In addition, people's purchasing power will decrease if there is no increase in wages. "Decreasing purchasing power will result in falling consumption levels. In the end, it will have a negative impact on the economy," said Said Iqbal.

After all, he said, not all companies are in trouble due to the COVID-19 pandemic. As much as possible, Said Iqbal asked that the wage increase policy be carried out proportionally.

"For companies that are still capable, they must raise the minimum wage. Then for companies that are not capable, the law has provided a way out by postponing the minimum wage," he added.