Anies Values 5.1 Percent Increase In UMP Is Very Rational

DKI Jakarta Governor Anies Baswedan/Photo: Antara

JAKARTA - DKI Jakarta Governor Anies Baswedan assesses that the revision of the 2022 provincial minimum wage (UMP) increase in DKI Jakarta by 5.1 percent provides a sense of justice for workers compared to the previous stipulation which only rose 0.85 percent.

"The revision of the UMP increase is to provide a sense of justice for all, for workers there is a rational increase in income. For entrepreneurs, with the current economic growth, it is also rational," said Anies, quoted on Sunday, December 19.

In the revision, the increase in the DKI Jakarta UMP in 2022 was 5.1 percent, reaching Rp225,667 or greater than the 2021 UMP of Rp4,416,186, and also greater than the nominal increase previously set for the 2022 UMP of Rp37,749.

Anies explained, before the COVID-19 pandemic, the average increase in the DKI Jakarta UMP reached 8.6 percent. Then, the UMP in 2022 is only 0.85 percent or Rp37,749, based on the UMP formula set by the Ministry of Manpower.

The former Minister of Education and Culture also revealed that the previous UMP formula from the Ministry of Manpower was not suitable to be applied in Jakarta.

If we look closely, the increase in the UMP is smaller than the inflation rate in Jakarta of 1.1 percent.

"Everywhere if the UMP increase is above inflation. Therefore, we feel that the formula given to us in the provinces in Indonesia, especially in DKI Jakarta, does not provide a sense of justice," he said.

The revision to the increase in the DKI Jakarta UMP is determined based on a study by Bank Indonesia which projects Indonesia's economic growth in 2022 to reach 4.7 percent to 5.5 percent.

Then inflation is projected to be controlled at 3.0 percent or in the range of 2 to 4 percent. Likewise, a study by the Institute for Development of Economics and Finance (Indef) projects that Indonesia's economic growth in 2022 will be 4.3 percent.

Anies explained that the decision was also based on a review and re-discussion with all relevant stakeholders, as well as with the spirit of prudence in the midst of the economic pace of Jakarta starting to move.

"With an increase of Rp225 thousand per month, our brothers and workers can use it as an addition to their daily needs," Anies added.