Minimum Wage Rules Change Again, Apindo Boss: Cause Uncertainty For Investors

Most recently, the Constitutional Court (MK) granted a number of lawsuits filed by workers related to the Employment Cluster Work Creation Act (UUCK).

The submission of the lawsuit, one of which affects the determination of the minimum wage which will use the new rules. Apindo Chairman Shinta Widjaja Kamdani said the decision was quite surprising for entrepreneurs.

"With the existing decision, of course we see that the process has been going on and running so far. We regret that this may not be in line with the expectations of many parties," Shinta said on the Media Briefing Apindo agenda in the Menteng area, Central Jakarta, Tuesday night, November 26.

Shinta explained that the current condition of the Indonesian economy only grew by 4.95 percent in the third quarter of 2024. In addition, there have been many slowdowns in many sectors, including agriculture, food and beverages, financial services, transportation, warehousing, health and others.

However, Indonesia is also experiencing problems with informal sector workers and the high unemployment rate. According to Shinta, that is precisely what the government should pay more attention to.

"We don't need to talk at length about the increase in the UMP (with) a changed formula. If Indonesia itself has the main problem, it can't create jobs. What will happen? We are here to conflict about the wage formula that has changed several times, but the fundamental of the existing issue is the creation of jobs," he said.

According to Shinta, changes to the rules related to the minimum wage that have occurred 4 times have also created uncertainty for investors. In fact, legal certainty is the most important for entrepreneurs.

"In response to the government's plan regarding the increase in the minimum wage, we also feel that this is something that must be considered. That so far the existing formula has actually been established and it has been 4 times, yes, changing the arrangements. This has also created uncertainty for investors," said Shinta.

He also asked the determination of the minimum wage to accommodate various interests and all stakeholders. Shinta said that the welfare of entrepreneurs needs to be considered, but the government needs to see the labor sector from various elements.

On the same occasion, Apindo Head of Manpower Bob Azam said that his party had expressed disappointment among entrepreneurs to the Minister of Manpower (Menaker) Yassierli regarding changes to the minimum wage regulations.

"We convey to the Minister of Manpower, we are disappointed. However, we must not stop hoping for this country," he said.

According to Bob, there are several parties who are trying to divide the community of businessmen and workers. He suspected that the party came from abroad who were not happy to see Indonesia progress. Because, there are many investment potentials that must be separated from the legal uncertainty.

"This seems like we entrepreneurs and workers were deliberately divided. I started to see that there may be elements of foreign hands, you know, which are not happy that we are becoming economic and industrial forces in countries (world), especially the south," he said.