Central Java Trying To Apply Double Provincial Minimum Wage Formula, In Consideration Not All Companies Affected By Pandemic

Ganjar Pranowo (Photo via Central Java Provincial Government)

JAKARTA - The Governor of Central Java, Ganjar Pranowo is reviewing the determination of the provincial minimum wage (UMP) next year with a double UMP formula. The formula is considered the most appropriate in the midst of the economic conditions that were shaken after the pandemic.

This was conveyed by Ganjar after meeting the Central Java Confederation of All-Indonesian Trade Unions (KSBSI) at his office, Friday, November 19. This system has been brought into discussion with businessmen, workers, and related parties to strengthen the formula.

"The UMP formula is already standard in Government Regulations (PP). Because it's standardized, we actually just have to sign it because all the formulas are already there. Only if we use the UMP, in my opinion, this is unfair," said Governor Ganjar.

From that discussion, Ganjar got the fact that there were companies that were affected by the pandemic, but some were not. So if the UMP is beaten evenly, according to him, there must be strong ones and some not.

"If it is beaten evenly, there are those who are calm, but there are also those who object. So we are doing a study, maybe we shouldn't make a formula like a double UMP. So those who are affected are set by UMP rules according to the PP formula, but for those who are not affected, why not increase much higher. So it can be both," he explained.

According to him, currently, there is an anomaly in the post-pandemic economic sector. Thus, the regulations related to employment are expected to be more flexible.

"If it is allowed, we will make a double UMP formula. So that if it returns to normal, for example in 2022 to 2023, it can be improved to be the same again. Now we are studying it, we cluster may not make that rule. Because if we don't use that formula, we will already know our numbers. It's very low," he said.

In addition to the double UMP, Ganjar also encourages all companies to implement a pay scale structure in their respective workplaces. For those who have worked for more than one year, their salary must be adjusted according to the rules of the wage scale structure.

"UMP is only for workers with a working period of one year and under. So I ask the company to apply the rules for the structure of the wage scale for those who have worked for more than a year. We have discussed with employers and those who are able to increase their height as well. only formula. I think this is more fair, "he concluded.

Meanwhile, Secretary of the Central Java KSBSI Regional Coordinator (Korwil), Toto Susilo, after meeting Ganjar, said that his party strongly agreed with the plan to implement a double UMP or what they call sectoral wages. According to them, not all companies in Central Java experienced losses during the pandemic.

"Many companies are actually advancing, opening branch offices, adding employees, and increasing productivity. This means that it is not appropriate that the pandemic is the reason for not raising labor wages," he said.