Kadin Hopes That The Issue Of The 2024 Wage Increase Will Not Be Brought To The Political Field, This Is The Factor

JAKARTA - The Indonesian Chamber of Commerce or Kadin welcomes the issuance of a new regulation on wages through Government Regulation (PP) Number 51 of 2023 on the revision of Government Regulation Number 36 of 2021.

Even so, 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 hopes that issues related to this wage increase will not be brought into the political realm.

Because, it is feared that it will create uncertainty for the business world and potential investors. Then, caused a turmoil in industrial relations which ultimately had an impact on employment and the future of the national economy.

"The central government must firmly impose sanctions on anyone who does not comply with regulations related to wage fixing, including regional heads if setting the UMP/UMK to deviate from PP No. 51 of 2023," said Sarman in a written statement received by VOI, Monday, November 13.

Sarman emphasized that business actors remain committed so that the welfare of workers must increase from year to year in accordance with the capabilities of entrepreneurs and national economic conditions.

"We hope 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 so that it has an impact on the national economy," he said.

For your information, the Minister of Manpower (Menaker) Ida Fauziyah ensures that the minimum wage for 2024 will 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).