Waiting For The Results Of The Administrative Court's Appeal On The 2022 DKI UMP To Determinate An Ascension To 2023 Wage

JAKARTA - The DKI Jakarta Provincial Government has started to formulate the DKI Jakarta provincial minimum wage (UMP) in 2023. It is planned that the DKI Jakarta Wage Council will determine an increase in the 2023 UMP on 20 November 2022.

Head of the DKI Jakarta Manpower, Transmigration and Energy Agency (Disnakertransgi) Andri Yansyah said the wage value to be determined will consider a number of things.

One of them is an appeal against the decision of the State Administrative Court (PTUN) which canceled the Governor's Decree (Kepgub) Number 1517 of 2021 concerning the 2022 UMP. This Decree increased the DKI UMP by 5.1 percent in 2022.

"Currently we are waiting for the decision of the Administrative Court which will be what the decision will be like, we will see later. I think we will wait for a decision from the Administrative Court. It's new, after that we will discuss it with experts in the future," Andri told reporters, Wednesday, October 26.

In addition, the Wage Council is also waiting for the economic growth rate which will be released by the Central Statistics Agency (BPS).

"Indeed, inflation has 4.6 percent. Economic growth, God willing, will be released by BPS on November 7," said Andri.

Then, DKI is also waiting for the number of household workers to be conveyed by the Ministry of Manpower. After these figures come out, DKI will formulate the amount of wages by referring to Government Regulation Number 36 of 2021 concerning Wages.

"However, before that we had also discussed opinions and socialization from the Ministry of Manpower and had received socialization from the Ministry of Home Affairs, including that we also held discussions with the expert council and including from BPS saw what kind of economic growth was," said Andri.

Separately, Deputy Chairperson of the Provincial Leadership Council of the DKI Jakarta Indonesian Employers' Association (Apindo) Nurjaman hopes that the court's decision will reject the appeal filed by the DKI Provincial Government on the Administrative Court's decision. Thus, the increase in the DKI UMP in 2022 will be 0.85 percent.

"Hopefully the provincial government's appeal will be rejected and return to the Administrative Court's decision or return to applicable regulations. Because our country is a state of law. We don't talk about anything else because it's just," said Nurjaman.

For information, former DKI Jakarta Governor Anies Baswedan on November 20, 2021 has set an increase in the 2022 Provincial Minimum Wage (UMP) by 0.85 percent to IDR 4,452,953. The increase is based on the provisions of Law Number 11 of 2020 concerning Job Creation and the formula contained in Article 26 and Article 27 of Government Regulation Number 36 of 2021 concerning Wages that apply to workers/laborers with a working period of less than 1 year.

However, after a few days, the decision was revised. Anies realized that the increase in the DKI UMP which was only Rp37,749 was too small. The formula for raw wages from the central government ignored several facts, among others, the existence of a number of industrial sectors that grew rapidly.

So that on November 22, 2021, he sent a letter requesting to change the formula for calculating the UMP to the Ministry of Manpower. Finally, on December 18, 2021, the DKI Provincial Government set the DKI Jakarta UMP 2022 at IDR 4,641,854.

"We consider an increase of 5.1 percent of a feasibility for workers and remains affordable for employers. With an increase of IDR 225,000 per month, workers can use it as an additional daily requirement," Anies said in a press release.

The determination is a breath of fresh air for workers, but not for entrepreneurs. The DKI Jakarta Indonesian Employers Association (Apindo) immediately filed a lawsuit against Anies' decision regarding the determination of the 2022 UMP to the DKI Jakarta Administrative Court.

Finally, on July 12, 2022, the DKI Jakarta Administrative Court granted Apindo's lawsuit. In its decision, the Jakarta Administrative Court panel of judges also canceled DKI Jakarta Governor Decree No. 1517 of 2021. As a result, the DKI Jakarta UMP fell to Rp. 4,573,845.

The Administrative Court's decision made the workers inflamed. They again raided the DKI Jakarta City Hall on July 20, 2022 to urge Anies to appeal to the Supreme Court. Workers also asked that the DKI UMP be determined not immediately because of the Administrative Court's decision.

"As long as there is no decision at the appeal level, the wage is still valid for a long time. The Administrative Court's decision does not yet have binding legal force," said the President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal.