JAKARTA - The Governor of DKI Jakarta, Anies Baswedan, on November 20, 2021, has set an increase in the 2022 Provincial Minimum Wage (UMP) by 0.85 percent to Rp4,452,953. 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 PP Number 36 of 2021 concerning Wages which apply to workers/laborers with a working period of less than 1 (one) year.
However, after a few days, the decision was revised. Anies realized that the increase in the DKI UMP which was only Rp. 37,749 was too small. The standard wage formula from the central government ignores several facts, among others, the existence of a number of rapidly growing industrial sectors.
So on November 22, 2021, he sent a letter requesting to change the UMP calculation formula to the Ministry of Manpower. Finally, on December 18, 2021, the DKI Provincial Government set the 2022 DKI Jakarta UMP at IDR 4,641,854.
“We assess the 5.1 percent increase as a feasibility for workers and still affordable for employers. With an increase of Rp.225,000 per month, workers can use it as an additional daily need," Anies said through a press release.
The determination is a breath of fresh air for the workers, but not for the 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 State Administrative Court (PTUN).
"In response to the issuance of Governor's Decree Number 1517 of 2021, Apindo DKI Jakarta will file a lawsuit to the State Administrative Court (PTUN) against the DKI Jakarta Provincial Government," said Apindo DKI Jakarta Provincial Leadership Council (DPP) Chairperson, Solihin, Thursday, December 30, 2021.
As reported by VOI, Apindo assessed that Anies had violated the current wage regulations, especially Government Regulation Number 36 of 2021 concerning Wages, namely article 26 regarding how to calculate the minimum wage and article 27 regarding the Provincial Minimum Wage. The issuance of the 2022 Provincial Minimum Wage on November 21, 2021 has also passed the deadline.
In addition, it is not in line with the recommendations of the DKI Jakarta Wage Council, where two of the three elements of the DKI Jakarta Wage Council, namely Entrepreneurs and the Government, recommend that the amount of the UMP increase must be in accordance with PP No. 36 of 2021.
If left unchecked, it certainly has the potential to create an unfavorable climate for the business world and the national economy.
Finally, on July 12, 2022, the DKI Jakarta Administrative Court granted Apindo's claim. In its decision, the Jakarta Administrative Court panel of judges also canceled the DKI Jakarta Governor's Decree (Kepgub) Number 1517 of 2021 concerning the 2022 Provincial Minimum Wage dated December 16, 2021 which was signed by the Governor of DKI Jakarta Anies Baswedan. As a result, DKI Jakarta's UMP fell to Rp4,573,845.
The decision of the PTUN 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. The workers also asked for the determination of the DKI UMP not immediately because of the PTUN decision.
“As long as there is no decision at the appeal level, the old wages will still apply. The PTUN decision does not yet have binding legal force," said the President of the Indonesian Trade Union Confederation (KSPI), Said Iqbal.
Labor Declaration and Pilkada 2017Anies' 'closeness' to the workers has existed since at least the 2017 Pilkada. At that time, various labor organizations that were members of the Jakarta Workers' Coalition declared their support for the pair Anies Baswedan-Sandiaga Uno as candidates for governor and deputy governor of the second round of the DKI Pilkada.
Anies-Sandi succeeded in attracting them through a political contract which essentially provided a decent living and better welfare for the workers.
Whether it's true or not, the contents of the political contract were shown by the workers through writing on the banner when they took action asking for an increase in the 2018 UMP at DKI City Hall in November 2017. One of them was setting a higher DKI Jakarta minimum wage as stipulated in PP 78 Year 2015 through the Wage Council mechanism, as well as determining sectoral wages and the structure of the wage scale in accordance with the Manpower Law No. 13/2003. To journalists, Anies also admitted that there was indeed a political contract with the workers. However, he said, not all promises can be repaid in such a short time.
"There are things that can be done this month, there are things that need to be done next month, so everything is necessary for implementation, so give us time and we will do it all later," said Anies as quoted by Kompas.com, November 10, 2017.
As long as Anies leads the capital city, the UMP increase in Jakarta is around 8 percent every year. Details:
Increase in the 2017-2020 Jakarta UMP UMP DKI Jakarta 2017 IDR 3,355,750 (up 8.25 percent) 2018 DKI Jakarta UMP IDR 3,648,036 (up 8.71 percent) DKI Jakarta UMP 2019 IDR 3,940,973 (up 8.03 percent ) DKI Jakarta UMP 2020 IDR 4,267,349 (up 8.28 percent) DKI Jakarta UMP 2021 IDR 4,416,186 (up 3.27 percent) with exceptions due to the Covid-19 pandemic
Until now, the DKI Provincial Government has not decided whether to file an appeal or not to the Supreme Court. Deputy Governor of DKI Jakarta Ahmad Riza Patria said he was still observing the decision of the Jakarta State Administrative Court (PTUN).
"We respect the court's decision. However, the provincial government is evaluating whether we will appeal or not," said Riza in North Jakarta, Wednesday (13/7).
In principle, the DKI Jakarta Provincial Government seeks to ensure that workers or laborers in Jakarta get welfare through the determination of the Provincial Minimum Wage. However, the provincial government also continues to pay attention to the sustainability of entrepreneurs.
UMP and Electability of Anies BaswedanPolitical observer from Al-Azhar University, Ujang Komarudin, assessed that Anies would continue to follow the will of the workers. Win or lose will be another matter. At the very least, he has worked hard to fight for the will of the workers.
"Because if he doesn't appeal, Anies is considered to have given up, he is considered not serious about fighting for labor rights. Therefore, his defeat at the first level of the court, whether you like it or not, inevitably requires Anies to make an appeal," said Ujang when contacted by VOI, Saturday (23/7).
Politically, it is not impossible that this effort is an opportunity for Anies to increase his electability as a presidential candidate in the 2024 presidential election, which currently occupies the top position with Ganjar Pranowo in a number of survey institutions.
“Labors seem to still like Anies. Anies is considered serious, working hard to fight for labor rights in the context of raising the UMP," he added.
Ujang also considers it reasonable in political contestation, officials who will run for re-election or incumbents certainly have a tendency to use their policies for the sake of electoral political contestation.
Executive Director of the Indonesian Public Institute (IPI) Karyono Wibowo assesses that Anies' political libido to run as a presidential candidate for 2024 does look quite large. So, it is not wrong if there is an assumption that the DKI Provincial Minimum Wage is a stage for Anies in the political context of the 2024 presidential election.
"At least if he doesn't run in the presidential election, Anies still has a chance to run as a cagub for the second time," he said.
"Image or not. As a regional head, of course, many policies are made. It is proper for regional heads to make policies to protect their citizens, make their regions progress, and prosper their citizens," added Karyono.
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