Constitutional Court Decides On Unconstitutional Job Creation Law, KSPI Asks Anies' Team To Revoke Decision On 2022 UMP Determination

Illustration. (Photo: Doc. Antara)

JAKARTA - President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal asked all governors in Indonesia to revoke the Decree (SK) related to the determination of the 2022 Provincial Minimum Wage (UMP). This was in response to the decision of the Constitutional Court (MK) which declared the Job Creation Act unconstitutional.

According to Iqbal, the basis for determining wages cannot refer to PP No. 36 of 2021. Because the main thing, namely the Job Creation Law, has been decided by the Constitutional Court. Therefore, he asked that the determination of wages must refer to Law Number 13 of 2003 concerning Manpower and Government Regulation Number 78 of 2015 concerning Wages.

"In other words, all governors in the territory of the Republic of Indonesia must revoke the decree or decree regarding the provincial minimum wage (UMP). Including the Governor of DKI Jakarta, Mr. Anies Baswedan, must revoke the decree related to the 2022 UMP," he said in a virtual press conference, Thursday, November 25.

Iqbal emphasized that this demand also applies to all regents/mayors throughout Indonesia. In addition, KSPI also requested that the increase in the UMP and UMK be in the range of 4 to 5 percent.

"Governor Anies Baswedan of DKI Jakarta must also change the decree. Regents/mayors who have not issued the UMK in the negotiation process, we ask that the UMK be increased by 4 to 5 percent," he explained.

As is known, the Minister of Manpower Ida Fauziyah ensured that the average increase in the 2022 provincial minimum wage (UMP) nationally was 1.09 percent. Meanwhile, this provision is in accordance with the applicable formula in Government Regulation PP Number 36 of 2021 concerning Wages.

"The simulation is based on data from BPS, the average minimum wage increase is 1.09 percent, this is the national average," he said in a virtual press conference, Tuesday, November 16.

However, Ida explained that the determination of the UMP for each province still needed to wait for the results of the determination from the governor. He said the government had given the governor time to determine and collect the money no later than November 20, 2021.

"UMK no later than November 30, 2021 and carried out after of course after the determination of the provincial minimum wage," he said.

This provision is in accordance with law number 11 of 2020 concerning job creation. In addition, the government through the Minister of Home Affairs Tito Karnavian has also reminded the Governor regarding this obligation through a circular letter from the Minister of Home Affairs Number 561/6393/SJ regarding the determination of the 2022 annual minimum wage.

Furthermore, Ida said that various data for the calculation of the minimum wage formula have also been provided by the center to the regions. The data is sourced from the Central Statistics Agency or BPS.

"The spirit of the Minimum Wage formula based on PP Number 36 of 2021 is to reduce the Minimum Wage gap, so that justice between regions is realized. Justice between regions is achieved through an average household consumption approach in each region," he said.