The Increase In The UMP Referring To PP 36 Of 2021, Kadin: The Realm Of Respecting The Job Creation Law

Deputy Chairman of the Indonesian Chamber of Commerce and Industry Coordinator for Maritime Affairs, Investment, and Foreign Affairs Shinta W Kamdani. (Photo: Doc. Antara)

Deputy Chairman of the Indonesian Chamber of Commerce and Industry Coordinator for Maritime Affairs, Investment and Foreign Affairs Shinta W Kamdani emphasized that the increase in the Provincial Minimum Wage (UMP) will still refer to Government Regulation Number 36 of 2021 concerning Wages.

According to Shinta, this was done as a form of respect for the agreement in the Job Creation Law.

"We are very clear (clear), in terms of increasing the UMP we will follow PP 36/2021. That is clear, because from the beginning we have the Job Creation Law to be followed. That has been agreed and the formula already exists and we have to respect it," he said, quoted by Antara at the B20 Sustainability Awards 4.0 dinner, Tuesday 18 October.

Shinta hopes that the main referral to wages in PP 36/2021 can be consistently carried out by the government. The business world also highly respects the bipartite decisions between each company and its workers.

The business world itself, continued Shinta, is ready for any consequences as long as it sticks to the official reference.

"We follow that reference. Whatever the consequences, we have to convey it too. If there is a business world, business actors who don't have the ability or what, what kind of thing should we be, but the reference must be to PP 36/2021," added Shinta.

Previously, the determination of the 2023 Provincial Minimum Wage (UMP) would be carried out no later than November 21, 2022 and the Regency/City Minimum Wage no later than November 30, 2022.

The National Wage Council (Depenas) ensures that the determination of the UMP and UMK 2023 will be carried out based on the provisions contained in Government Regulation Number 36 of 2021 which is a derivative of the Job Creation Law.

Meanwhile, the President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal said that his party asked for an increase in the minimum wage in 2023 by 13 percent. Based on the Labor Party's R&D, after the increase in fuel, inflation in 2023 is expected to break to 7-8 percent, while economic growth is in the range of 4.8 percent