Labor Unions Consider Menaker Ida Fauziyah's Letter Similar To RT Circular

JAKARTA - The Confederation of Indonesian Workers Unions (KSPI) said that Indonesian workers rejected the Minister of Manpower's circular stating that the 2021 minimum wage was the same as the 2020 minimum wage, or in other words it would not increase.

The President of KSPI Said Iqbal said that the KSPI's stance clearly rejected the Ministerial Circular Letter and asked the governor as the party setting the minimum wage not to follow the circular requesting that there is no increase in the minimum wage in the province or district / city.

Moreover, said Iqbal, there is no agreement whatsoever between the national wage council and the government to agree that there will be no increase in drinking wages in 2021. In fact, in a larger forum attended by national wage councils at the provincial and district / city levels, there is no decision stating that the 2021 minimum wage does not increase.

"So what is the basis for the government to issue a circular asking the governor not to raise the minimum wage? It is reasonable to suspect that the Minister of Manpower lied against the arguments in issuing the circular," he said, in a virtual press conference, Friday, October 30.

Iqbal said that governors do not need to follow the circular letter of the Minister of Manpower Ida Fauziyah regarding there is no increase in the minimum wage in 2021. This is because in fact not all governors have decided but it has been claimed that there is no increase.

"It is no longer necessary to listen to this circular because it is an appeal. For example, Pak RT issued a circular for community service, the public may join in community service, some may not join in community service," he explained.

He reminded the governors to consider not provoking a wave of rejection by following a circular from the Minister of Manpower. Because, the problem of wages is something that is important for workers.

Furthermore, Iqbal said that labor unions still want an increase in drinking wages in 2021. This is because this is not the first time Indonesia has experienced an economic recession linked to an increase in minimum wages. In 1998, for example, Indonesia's economic growth was minus 17.6 percent. Meanwhile, the inflation rate is close to 78 percent.

"The existing trade union, together with the government and employers' organizations, agreed not to raise the minimum wage in the midst of a recession. But then there was strong and massive resistance from workers to reject the decision to not increase wages," he said.

This resistance is occurring, Iqbal said, because the agreement does not represent the aspirations that are developing at the factory level. There was a massive action that was widespread in all regions. President Habibie then took the decision to increase the minimum wage by approximately 16 percent.

According to Iqbal, with the same analogy, current economic growth and inflation are lower than in 1998. Where the economic growth this year is estimated to be minus 8 percent and inflation 3 percent.

On this basis, the KSPI proposes an increase in the 2021 minimum wage of 8 percent. However, if it is deemed difficult, the Wage Council and the Regional Government can discuss how much the minimum wage increase is considered appropriate.

Moreover, currently there are still many companies operating as usual. So don't be beaten flat, that all companies are not able to pay the increase in the minimum wage. Even if there are those who cannot afford it, the law has provided room for postponing the minimum wage.

"It cannot be 0 percent. The point is that there must be an increase. Please have a dialogue at the wage councils of each region," he said.