Entrepreneurs Call Determination Of UMP 2023 Will Picu Waves Of Layoffs

Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development Sarman Simanjorang. (Photo: Doc. Antara)

JAKARTA - Entrepreneurs expressed their objection regarding the determination of the increase in the provincial minimum wage (UMP) in 2023 which refers to the regulation of the minister of manpower (Permenaker) Number 18 of 2022.

In fact, the impact of the too high UMP determination will trigger a wave of termination of employment (PHK).

This was conveyed by the Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development Sarman Simanjorang.

"Entrepreneurs who plan to recruit new employees next year, it can be delayed or can be eliminated. Now that's an opportunity for unemployment, so the workspace is reduced. That's one," he said when met at the Indonesian Chamber of Commerce and Industry Tower, Tuesday, November 29.

"Secondly, it is possible to rationalize, namely reducing employees or even layoffs in this case," he continued.

In addition, said Sarman, there are other impacts that can be affected by the current 2023 UMP increase.

One of them is about the possibility of relocating the factory from a high UMP to a lower wage location.

"Thirdly, the transfer of factories can happen, it looks for a lower UMP. Let's say that in West Java it's just a jomplang between the truss of the garut tangerang, for example, far away, which is also something we are worried about in this regard," he said.

Therefore, said Sarman, the increase in the minimum wage should be in accordance with the ability of entrepreneurs as givers of wages. "So we really hope that the figure from the increase in the UMP is indeed in accordance with the ability of the business world," he said.