Don't Be Mixed About Determination Of The 2023 UMP, Chairman Of The Chamber Of Commerce And Industry: No Weights

Press conference Rapimnas Kadin 2022. (Photo: VOI/Mery Handayani)

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Arsjad Rasjid admitted that he was reluctant to respond further regarding the increase in the provincial minimum wage (UMP) in 2023 which has been set by 33 governors. "In a process carried out by each region in the wage council meeting, that's why I didn't touch this. If I talk about it (UMP 2023) is a girl, so Kadin can't be a girl with a process that exists," he said at the Kadin Tower, Kuningan, South Jakarta, Tuesday, November 29. Even so, Arsjad said the issuance of the Minister of Manpower Regulation (Permenaker) Number 18 of 2022 concerning the Determination of the 2023 Minimum Wage with a maximum amount of 10 percent has given rise to the worldism of rules. Where there is also Government Regulation (PP) Number 36 of 2021. The two rules discuss the rules for determining the UMP. Most recently, Permenaker Number 18 of 2022 specifically regulates the UMP 2023 formula. This formulation is seen as a less ideal entrepreneur. Employers also assess that the Permenaker's legal force is still below PP Number 36 Tofu 2021. "We see that there is dualism from the regulatory side, this is dangerous to create legal uncertainties," he said.

As a result, said Arsjad, the regulation reduces investor interest in injecting capital in Indonesia. Therefore, Arsjad also considered it natural for the employers' association to register a material test application or judicial review of Permenaker Number 18 of 2022 to the Supreme Court (MA). Even so, Arsjad emphasized that his party did not want to interfere in the lawsuit. "For the UMP, it is better to submit it to the existing mechanism," he said.