KSPI Calls The Determination Of The 2022 UMP Worse Than The Soeharto Era, Said Iqbal: Jokowi's Ministers Are Cruel

President of KSPI, Said Iqbal. (Photo: Doc. Antara)

JAKARTA - The Confederation of Indonesian Trade Unions (KSPI) rejects an average minimum wage increase of only 1.09 percent in 2022. This rate is far from the demand for a wage increase proposed by KSPI, which is raised by 7 to 10 percent. The current government is considered more in favor of entrepreneurs. Even the 2022 wage fixing is considered worse than the new order era of the Suharto government.

KSPI President Said Iqbal considered that the government wanted to restore the low-wage regime. According to him, the government's attitude, in this case, the Minister of Manpower, Ida Fauziyah, is actually providing more protection to entrepreneurs or capital owners than providing protection to workers or laborers.

"This is like bringing back the Low-Wage regime, much worse than during the Suharto era in the New Order era. Suharto didn't do this in the new order, the ministers (Jokowi) were so mean. Suharto's ministers didn't do this," he said at a private virtual press conference, Tuesday, November 16.

Therefore, KSPI also urges the government to set the minimum wage in accordance with Law (UU) Number 13 of 2003 and government regulation number 78 in setting the 2022 minimum wage adjustment instead of referring to the Omnibus Law on Job Creation. This is because the law is being challenged in the Constitutional Court or the Constitutional Court.

Furthermore, Iqbal said that PP No. 36 of 2021 as a derivative of the Job Creation Law also cannot be used as a reference for determining the 2022 minimum wage, because there is no legal basis for making derivative regulations regarding wages because the Job Creation Law is being challenged.

According to Iqbal, when referring to Law Number 13 of 2003, the basis for determining the minimum wage is based on the need for a decent living or KHL. Based on the KSPI survey in 10 provinces, in each of the five markets the average increase based on KHL is 7 to 10 percent.

Meanwhile, said Iqbal, if it is calculated using PP Number 78 of 2015 with a formula for calculating the minimum wage increase using inflation data and economic growth, the KSPI count from September 2020 to September 2021, the figure that appears is 4 percent to 6 percent for the 2022 minimum wage increase. That way, the government can make a decision that the 2022 minimum wage increase by 5 percent to 7 percent.

"The union's demands are 7 percent to 10 percent. That's the basis, so everything has a basis," he said.