Reluctant To Lose To Civil Servants, Workers Ask For UMP To Increase 15 Percent In 2024

Wage illustration (Photo: Doc. Antara)

JAKARTA - Workers who are members of the Confederation of Indonesian Trade Unions (KSPI) increasingly insist on asking the government to increase the provincial minimum wage (UMP) by 15 percent next year. One of these demands was triggered by the government's decision to raise civil servant salaries.

As is known, President Joko Widodo (Jokowi) decided to increase the salaries of State Civil Apparatus (ASN) including civil servants and the TNI/Polri by 8 percent next year. This decision was conveyed by Jokowi in the introduction of the 2024 RAPBN and the Financial Note at the DPR RI, Wednesday, August 16.

KSPI President Said Iqbal said the increase in labor wages was a natural thing. Moreover, previously President Jokowi had also decided to raise the salaries of ASN, including civil servants and the TNI/Polri.

"Seeing the government's decision to increase the wages of ASN/TNI & Polri by 8 percent, as well as Retirement by 12 percent, the Labor Party's demand to increase workers' wages by 15 percent is normal," said Said Iqbal, at a press conference, Monday, August 21.

"Where, the 8 percent calculation comes from economic growth and inflation. With details that economic growth is 5.2 percent and inflation is 2.8 percent, so it meets at 8 percent," he added.

According to Said Iqbal, the increase in the wages of ASN and retirees must also be accompanied by demands for an increase in labor wages by 15 percent. With the hope that there will be justice for workers who have devoted themselves to the nation's economic growth.

"Well, what about workers? In the article on wages, in the Job Creation Law, namely the Minimum Wage Increase, which is based on inflation, economic growth, coupled with certain 'indexes', the existence of certain indices is unfair," he said.

Iqbal explained, referring to Permenaker Number 18 of 2013, concerning certain indexes, it is the coefficient 0.1-0.3. So that when multiplied by economic growth, workers can only get about 4 percent.

"And this is lower. This doesn't make sense," he said.

Saiq Iqbal said that ASN and TNI/Polri work as state administrators or commonly referred to as call centers or workers who take costs from the state budget (APBN) alone can increase by 8 percent, the labor period below.

Meanwhile, continued Said Iqbal, the workers are profit centers or people who generate income and taxes for the state.

"Meanwhile, workers are profit centers, which generate. This means that the thinking logic of the Ministry of Manpower, the Ministry of Finance and the Coordinating Ministry for the Economy is chaotic," he said.

However, Said Iqbal admitted that he did not question the increase in wages, both for ASN and retirees. However, he repeatedly emphasized that the increase must also be accompanied by an increase in labor wages by 15 percent.

"Of course we from the Labor Party agree, if ASN wages increase by 8 percent and Retirement by 12 percent. But simultaneously, the Labor Party also asks the government, that in 2024 the wages of workers will increase by 15 percent," he said.

In addition, Said Iqbal also stated that the wage increase was based on Indonesia's current position, which has been included in the Middle Income Country. Based on data from the World Bank, by having gross domestic product (GDP) per capita between 4,046-12,535 US dollars.

Indonesia has entered the Middle Income Country, with a calculation of 5.6 million per month. So that when it is increased by 15 percent, the National Minimum Wage will approach the average value, around 3.5 million, from the highest wage to the lowest," he said.

For example, said Iqbal, where the Jakarta UMP reached Rp4.9 million, if it went to Rp5.6 million, it meant a difference of Rp700,000. And this meets 15 percent," he said.

Said Iqbal also denied that the perception from the Indonesian Employers' Association (Apindo) said that Indonesia is the country with the highest salary. This is because he, who is also the Deputy for Governing Body (GB) of the International Labor Organization (ILO), knows very well what the real facts are.

"It's not true that Indonesia is the country with the highest salary, because in fact we are under Vietnam. Apindo always said it was the highest, but I, as the ILO administrator, routinely issue official books with the trend of employment in Asia-Pacific, in 2014, was conveyed that Indonesia's average wage was 174 US dollars. Below Vietnam 181 US dollars, Thailand 256 US dollars, Malaysia 300 US dollars more and the Philippines 356 US dollars," he explained.