What Made Governor Anies 'Reckless' To Revise DKI UMP Increase To 5.1 Percent Has Been Revealed

DKI Governor Anies Baswedan (Photo via Facebook Anies Baswedan)

JAKARTA - DKI Jakarta Governor Anies Baswedan revised the amount of the 2022 DKI provincial minimum wage (UMP) increase to 5.1 percent without referring to the legal basis set by the central government.

It is known, the Ministry of Manpower has set a formula for increasing the UMP to local governments based on Government Regulation No. 36 of 2021.

However, seen in the Decree of the Governor of DKI Jakarta Number 1517 of 2021 concerning the Provincial Minimum Wage of 2022 which has just been circulated, Anies uses three legal grounds in determining the revised UMP.

First, Anies uses Law No. 29 of 2007 concerning the administration of DKI Jakarta as the capital of the Republic of Indonesia.

The second is Law Number 23 of 2014 concerning Regional Government which was amended several times in the Job Creation Law Number 11 of 2020.

The third is Law Number 30 of 2014 concerning Government Administration which was amended in the Job Creation Law Number 11 of 2020.

"When this governor's decision comes into effect, Governor's Decree Number 1395 of 2021 concerning the 2022 Provincial Minimum Wage is revoked and declared invalid," Anies wrote in the governor's decree signed on December 16, 2021.

Anies also explained that the revision to the UMP increase was not taken from two aspects. First, a Bank Indonesia study which states that Indonesia's economic growth projection in 2022 will reach 4.7 percent to 5.5 percent and inflation will be controlled at 3 percent.

Second, this decision is based on a review and re-discussion with all relevant stakeholders.

The increase in the amount of the UMP was also carried out after Anies' efforts had previously sent a letter to the Indonesian Minister of Manpower regarding the Proposal for a Review of the 2022 Provincial Minimum Wage Determination Formula (UMP).

"We assess this 5.1 percent increase as feasibility for workers and still affordable for entrepreneurs. This will also increase people's purchasing power," said Anies on Saturday, December 18.

It is known, Anies changed the UMP increase from 0.85 percent initially to 5.1 percent. In 2021, DKI's UMP is IDR 4.416.186. If it increases by 0.85 percent or IDR 37.749, the 2022 UMP will become IDR 4.453.935. Then, when Anies raises 5.1 percent or IDR 225.667, the UMP for DKI next year will be IDR 4.641.854.