Apindo East Java Disappointed UMK 2022 Increases, Threats To Move Business To Central Java

ILLUSTRATION/SPECIAL

SURABAYA - Entrepreneurs in East Java are starting to move their businesses to Central Java. The reason is that the 2022 Regency/City Minimum Wage (UMK) in East Java in the ring one area has increased by IDR 75 thousand.

"I received information that my friends are starting to open a new company in Central Java", said Apindo East Java's Deputy Wage Coordinator, Johnson Simanjuntak, confirmed on Wednesday, December 1.

Unfortunately, Johnson did not specify the number of companies that would move to Central Java. According to him, there are several considerations for entrepreneurs to move their business to Central Java, one of which is because the UMK in Central Java is smaller than East Java.

"Then the infrastructure there is also getting better, and the productivity of workers there is also not inferior to East Java. Unlike remote infrastructure in East Java, such as toll roads and several ports, it is still difficult", he said.

Johnson admitted that he was disappointed with the decision of the Governor of East Java, Khofifah Indar Parawansa, regarding the determination of the 2022 UMK, especially in the five areas of ring one. They are Surabaya City, Gresik Regency, Sidoarjo Regency, Pasuruan Regency, and Mojokerto Regency.

The government should, said Johnson, let the industry breathe first, even though economic conditions are starting to improve. Because two years of the COVID-19 pandemic is not an easy time for entrepreneurs.

"The UMK is not a matter of ideas or the company's ability to pay, but this is beyond the existing regulations, namely PP 36 which is absolutely applicable to the determination of the 2022 Provincial Minimum Wage (UMP)", he said.

The East Java Provincial Government sets the district/city minimum wage (UMK) in 2022 through the Decree of the Governor of East Java Number 188/803/KPTS/013/2021.

In the letter, it was written that the UMK in Surabaya was still the largest compared to other regencies/cities, which was IDR 4,375,479.

Followed by Gresik Regency worth IDR 4,372,030, Sidoarjo Regency with IDR 4,368,581, Pasuruan Regency with IDR 4,365,133, and Mojokerto Regency with IDR 4,354,787. The rest are still in the range of IDR 3 million and below.