Governor Of DKI Jakarta UMP Revision Is Issued, Anies Threatens Sanctions For Companies That Violate

Governor of DKI Jakarta, Anies Baswedan. (Photo: DOK. Instagram aniesbaswedan)

JAKARTA - DKI Jakarta Governor Anies Baswedan has officially issued DKI Jakarta Governor Decree Number 1517 of 2021 concerning the Provincial Minimum Wage of 2022. This Decree is a revision of the Governor's Decree regarding the determination of the previous UMP.

In the gubernatorial decree, Anies set the 2022 UMP in DKI at Rp4,641,854. Anies prohibits employers from paying wages lower than this stipulated UMP.

It is regulated that entrepreneurs who have given wages higher than the DKI Jakarta UMP in 2022 as revised are prohibited from reducing or lowering their company's UMP.

"Companies that violate the provisions (stipulation of the revised UMP) will be subject to sanctions in accordance with statutory provisions," Anies wrote in the governor's office, quoted on Monday, December 27.

Then, the entrepreneur is obliged to compile and implement the structure and scale of wages in the company by taking into account the company's capabilities and productivity as a guide for the wages of workers with a working period of 1 year and over.

There is also the 2022 UMP which comes into effect as of January 1, 2022 and applies to workers who have worked for less than 1 year.

Anies made the determination of the revised UMP 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.

Anies uses three legal bases in determining the revised UMP. First, Anies uses Law No. 29 of 2007 concerning the DKI Jakarta Government as the capital city 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.

Anies changed the UMP increase from 0.85 percent to 5.1 percent. In 2021, DKI's UMP is IDR 4,416,186. If it increases by 0.85 percent or Rp. 37,749, the 2022 UMP will be Rp. 4,453,935. Then, when Anies raises 5.1 percent or Rp. 225,667, the UMP for DKI next year will be Rp. 4,641,854.