'There Is A Discrepancy Between The UMP Formula And The Real Conditions In The Field', Contents Of Anies' Letter Sent To The Minister Of Manpower

DKI Governor Anies Baswedan (Photo via Facebook Anies Baswedan)

JAKARTA - DKI Jakarta Governor Anies Baswedan sent an official letter to the Minister of Manpower Ida Fauziah. The contents of the letter asked Minister Ida to review the formula for determining the 2022 Provincial Minimum Wage (UMP).

"We propose and expect the Minister to review the formula for determining the UMP as regulated in Government Regulation No. 36 of 2021 concerning Wages," Anies said in a letter to the Minister of Manpower, a copy of which was received by journalists in Jakarta, Monday, November 29, quoted from Antara.

Anies said, the proposed review of the formula for determining the UMP is in order to fulfill the principles of justice and harmonious industrial relations, so that the welfare of workers or laborers can be realized.

Anies' request was stated in a letter to the Minister of Manpower on November 22, 2021, regarding the proposal to review the formula for determining the UMP.

In the letter, Anies explained that the DKI Jakarta Provincial Government is required to apply the calculation of the UMP exactly or in accordance with the formula for Government Regulation Number 36 of 2021 which is rewritten into Governor's Decree Number 1395 of 2021 concerning the Provincial Minimum Wage of 2022.

Then, the DKI Provincial Government is required to stipulate/announce before November 21, 2021. The Governor's decision, he continued, was made solely so as not to violate the above provisions.

"On the other hand, the DKI Jakarta Provincial Government sees that there is a discrepancy and lack of justice between the formula for determining the UMP from the Ministry of Manpower of the Republic of Indonesia and the actual conditions on the ground," he said.

Based on the formula from Government Regulation Number 36 of 2021, the increase in the UMP in DKI Jakarta in 2022 is only IDR 37,749 or 0.85 percent to IDR 4,453,935 per month.

The increase, which was only Rp. 38 thousand, was deemed very far from feasible and did not fulfill the principle of justice, considering that the increase in the living needs of workers or laborers could be seen from the inflation in DKI Jakarta, which was 1.14 percent.

For information, in the last six years the average increase in the DKI Jakarta UMP was 8.6 percent, namely in 2016 by 14.8 percent, then in 2017 by 8.2 percent, 2018 by 8.7 percent, 2019 by 8 percent, 2020 will reach 8.5 percent and 2021 at 3.2 percent.

In addition, he continued, there are dynamics of economic growth where not all business sectors during the COVID-19 pandemic experienced a decline.

Some sectors even experienced an increase, for example, the transportation and warehousing, information and communication, financial services, health services, and social activities based on data from the DKI Jakarta BPS Economic Growth Quarter III-2021.

Meanwhile, said Anies, DKI Jakarta Province is the only province that does not have a Regency/City Minimum Wage so that the Provincial Minimum Wage is the final determination that applies in all city/district areas.

"While there is no new formula for determining the UMP, the DKI Jakarta Provincial Government is reviewing the calculation of the 2022 UMP and discussing it again with all stakeholders to complete and revise the Governor's Decree so that the principle of justice can be felt," Anies wrote.