DKI Pemprov Determines Companies May Not Increase Minimum Wage Through PSBB Data

JAKARTA - Head of the Jakarta Manpower, Transmigration and Energy Agency, Andri Yansyah, said companies that may not increase the 2021 minimum wage are determined based on surveillance data during the Large Scale Sausal Restriction (PSBB) period.

"By carrying out the PSBB to the transitional PSBB, we can see which business sectors are affected by COVID-19 and which sectors are not affected," Andri told reporters, Monday, November 2.

He said, when applying for a permit not to increase wages in Jakarta, a company must formally submit a request to the Governor of DKI through the Disnakertansgi. Then, the application is forwarded to the DKI Wage Council.

The Wage Council consists of government elements, such as the DKI Economic Bureau, the DKI Health Service, the DKI Transportation Service, the Central Statistics Agency. In addition, there are also elements from academia, employers' associations, and elements of trade unions.

"We will ask the elements of the Wage Council to help assess which ones are affected, which are not affected by COVID-19," said Andri.

The Wage Council will look at the company's supervision data during the Jakarta PSBB period. If the economic condition of a company declines or reduces employees, it is permissible not to increase wages

"If we approve the submission of a company or employer, it means that he may use the 2020 provincial minimum wage (UMP). But if the application is not approved, we will be tapped using the 2021 UMP," he continued.

Even so, there are a number of companies that do not need to be assessed by the Wage Council because they can be immediately identified as being affected by COVID-19. Affected businesses include malls, hotels, tourism, property, retail, the food and drink trade.

"It is clear that 7 months of business is not operational due to PSBB, it will automatically be affected. If they submit a request not to raise wages, we will not make it difficult. There is no need for any more studies," said Andri.

Previously, DKI Jakarta Governor Anies Baswedan chose an asymmetric policy in setting the minimum wage in 2021. This is due to the COVID-19 pandemic which has an impact on the economic conditions of some business sectors.

Therefore, Anies made adjustments to the determination of the provincial minimum wage (UMP) 2021 with the 2020 UMP for companies affected by the COVID-19 pandemic.

However, there are still business sectors that are not too affected and can even continue to grow positively during this pandemic. Thus, the business sector that was not affected by the pandemic in Jakarta experienced an increase in the minimum wage of 3.27 percent.

"The DKI Jakarta Provincial Government determines the amount of the DKI Jakarta UMP in 2021 at Rp 4,416,186. Meanwhile, companies affected by COVID-19 can use the same value as the 2020 UMP," said Anies.

In order to be exempt from the rules for increasing the UMP, the company must make an application letter and be equipped with a financial report for the last year. Thus, it will be known whether the company was affected by a pandemic or not. However, for companies that do not make applications, they are considered capable of increasing wages according to the 2021 UMP regulations.