The Jakarta Provincial Government Has Not Determined The 2025 Sectoral Minimum Wage

Head Of DKI Jakarta Manpower, Transmigration And Energy Agency (Nakertransgi), Hari Nugroho/ANTARA

JAKARTA - The Provincial Government (Pemprov) of DKI Jakarta has not been able to set a sectoral minimum wage (UMS) for provinces in 2025 because it has not yet determined its sectors.

"We haven't talked about the numbers yet, because we don't agree which sector will be created, which will appear," said Head of the DKI Jakarta Manpower, Transmigration and Energy (Nakertransgi) Office, Hari Nugroho, as reported by ANTARA, Wednesday, December 11.

Hari said there was a difference of opinion between workers and employers regarding which sectors needed to be paid.

Entrepreneurs propose five sectors namely automotive and chemical, information and communication, large and retail trade, financial services, construction and real estate.

Meanwhile, of the 13 sectors proposed by workers, namely construction; chemistry, energy and mining; metal, electronics and machinery; automotive; insurance and banking; eating and drinking; pharmaceuticals and health; textiles, clothing and skin; tourism; telecommunications; retail; electricity and transportation.

"From the meeting on December 9, December 10, it turned out that no agreement had been made. The workers asked 13 sectors to be included. Then from the employer's side there were five sectors," explained Hari.

Thus, he said, the DKI Provincial Government has not been able to determine the amount of wages.

"We haven't talked about the number. This is the 11th if the Minister of Manpower Regulation (Permenaker) of the Republic of Indonesia 16 of 2024 must determine. However, because there is no agreement, UMSP has not yet been determined," said Hari.

Previously, the Government through the Regulation of the Minister of Manpower (Permenaker) of the Republic of Indonesia Number 16 of 2024 concerning the Determination of Minimum Wage in 2025 stated that the value of the provincial sectoral minimum wage must be higher than the provincial minimum wage (UMP).

UMS is established for certain sectors that have different characteristics and work risks from other sectors, as well as more severe job demands or specialization is needed.

The sector in question is listed in the standard classification of Indonesian business fields and recommended by the Provincial Wage Council to the governor to determine the provincial sectoral minimum wage, then the district/city Wage Council to the governor through the regent/mayor to determine the district/city sectoral minimum wage.

Meanwhile, the DKI Jakarta Provincial Government has set the 2025 UMP to rise by 6.5 percent compared to last year, from IDR 5,067,381 to IDR 5,396,760.

Before establishing Jakarta, the DKI Jakarta Provincial Government held dialogues with various parties such as the DKI Jakarta Manpower, Transmigration and Energy Service (Disnakertransgi) together with the Provincial Wage Council to determine the Provincial Minimum Wage and Sectoral Wage (UPMSP), on 9-10 December 2024.

Apart from them, the Indonesian Employers' Association (Apindo), the Central Statistics Agency (BPS) and experts were also involved.

The DKI Provincial Government applies a stipulation based on the Permenaker formula Number 16 of 2024 concerning the Determination of Minimum Wage in 2025 as the legal basis for its implementation.

The stipulation to increase the provincial minimum wage (UMP) in 2025 by 6.5 percent is one of the efforts to maintain the purchasing power of workers or laborers and business competitiveness.

The percentage increase takes into account economic growth, inflation and certain indexes.