Minimum Wage 2021 Does Not Increase, KSPI: Minister Of Manpower Ida Fauziyah Doesn't Care About Workers' Fate

JAKARTA - The Confederation of Indonesian Workers Unions (KSPI) regrets the attitude of the Minister of Manpower who issued a circular asking governors to make adjustments to the determination of the minimum wage in 2021 to equal the value of the 2020 minimum wage.

The decision is contained in Circular Letter (SE) Number M / 11 / HK.4 / x / 2020 dated October 26, 2020. Through this letter, governors are also asked to determine the minimum wage after 2021 in accordance with the provisions of laws and regulations, and stipulate and announce the 2021 Provincial Minimum Wage on 31 October 2020.

The President of KSPI Said Iqbal said, with the issuance of this circular, the workers' resistance action will be even stronger against the rejection of the absence of a 2021 minimum wage increase and the rejection of the Omnibus Law on Cipta Kerja.

Iqbal said that the KSPI and all labor unions in Indonesia will carry out massive national actions in 24 provinces on November 2 and November 9 to 10 which will be attended by tens and even hundreds of thousands of workers.

This demonstration will be centered at the Constitutional Court, Palace, DPR RI, and at Governor's offices throughout Indonesia with the issue of canceling the Omnibus Law on Employment and there must be an increase in the 2021 minimum wage to maintain people's purchasing power.

Because of that, Iqbal said, KSPI asked the governors to ignore the minister of manpower's circular in setting the 2021 minimum wage.

"Menaker does not have the sensitivity of the fate of workers, only looks at the interests of employers," he said, in a written statement received by VOI, Tuesday, October 27.

On the other hand, Iqbal admitted, entrepreneurs are in trouble due to the pressure of the COVID-19 pandemic. However, labor is much more difficult. Therefore, the government should be able to act more fairly, namely by continuing to increase the minimum wage in 2021.

However, he said, companies that are not able to afford it can postpone them by not raising the minimum wage after negotiating with trade unions at the company level and reporting it to the Ministry of Manpower.

"Do not be beaten flat by all the poor companies. In fact, in 1998 there was an increase in the minimum wage to maintain people's purchasing power," he said.

On the other hand, Said Iqbal questioned whether the decision of the Minister of Manpower Ida Fauziyah was known and had received approval from President Joko Widodo.

"Does the president already know the Menaker decision? Or is it just the Menaker decision ?," he said.

KSPI, said Said Iqbal, sees four reasons why the 2021 minimum wage must increase. First, if the minimum wage doesn't increase, it will only make the situation even hotter. Moreover, currently workers are still fighting for rejection of the Omnibus Law on Job Creation.

Said Iqbal said, along with the rejection of the Omnibus Law, workers will also voice so that the 2021 minimum wage continues to rise. So that the actions will be even bigger.

Second, the reason wages are not rising is because currently minus economic growth is not correct. This can be compared with what happened in 1998, 1999, and 2000.

"For example, in DKI Jakarta, the minimum wage increase 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 wage, the minimum wage still increased by around 23, 8 percent, whereas the economic growth in 1999 was minus 0.29 percent, "he said.

Third, if the minimum wage does not increase, the people's purchasing power will decrease. Declining purchasing power will result in a fall in the level of consumption. In the end, it has a negative impact on the economy.

Fourth, not all companies are struggling due to the COVID-19 pandemic. Therefore, he asked for the wage increase policy to be carried out proportionally.