The 2024 Minimum Wage Is Confirmed To Increase Along With The Issuance Of New Rules, Apindo Says This

JAKARTA - The Indonesian Employers' Association (Apindo) has responded to the minimum wage, both the UMP and UMR, which will certainly increase in 2024.

Chairman of Apindo Shinta Kamdani said that Government Regulation or Government Regulation Number 51 of 2023 which regulates wages has been ratified. He said that the ratification of the regulation must be respected by all parties.

Nevertheless, Shinta highlighted the new wage formula. He hopes that the determination of certain indexes must take into account the economic situation and labor conditions in the area.

"We think this is crucial as a preventive measure to prevent the impact on the situation of industrial relations that could potentially absorb labor," Shinta said when contacted by VOI, Monday, November 13.

He said that the implementation of the minimum wage provisions must be based on the spirit of unity to build the economy in the country. Thus, deliberation and consensus is important.

"Because differences of opinion are dynamics that inevitably will occur," he said.

Meanwhile, Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development as well as Member of the 2023-2026 National Wage Council Sarman Simanjorang said the business world welcomed the issuance of the PP.

Sarman hopes that this new provision can be accepted and implemented by all parties to improve the welfare of workers and the continuity of the business world in the midst of global economic conditions that are full of uncertainty. Thus, it has an impact on the national economy.

"We all have to unite, especially employers, workers, and trade unions to strengthen the national economy so as to avoid termination of employment (PHK) as has happened in the labor-intensive industry sector," he said.

Previously reported, the Minister of Manpower (Menaker) Ida Fauziyah ensured that the 2024 minimum wage would certainly increase.

This increase is in line with the issuance of new rules regarding wages.

The regulation in question is Government Regulation (PP) Number 51 of 2023 concerning Amendments to Government Regulation Number 36 of 2021 concerning Wages.

"This minimum wage increase is a form of appreciation to fellow workers/laborers who have contributed to our economic development so far," said Ida Fauziyah through the Public Relations Bureau of the Ministry of Manpower, Saturday, November 11.

Furthermore, Ida said, the PP issued on November 10, 2023 is the basis for determining the 2024 Minimum Wage and so on.

"Furthermore, we ask the governors, heads of offices in charge of manpower, as well as the regional wage council to carry out their duties as mandated by this government regulation, and the determination of the provincial minimum wage is set no later than November 21 and for the district/city minimum wage on November 30," he said.

The certainty of the minimum wage increase is obtained through the application of the Minimum Wage Formula in Government Regulation Number 51 of 2023 which includes three variables, namely Inflation, economic growth, and certain indexes (symbolized in the form of sickles).