Airlangga: In The Job Creation Law, Labor Wages Will Not Be Lower Than The Previous Year

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Twitter @airlangga_hrt)

JAKARTA - The Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the Job Creation Law (UU) still guarantees workers' rights, especially regarding wages. Airlangga ensured that workers' wages would not be lower because the law prohibited employers from paying lower wages compared to the previous year.

"In the existing labor regulations, employers are prohibited from paying wages lower than the previous year. Likewise in the Job Creation Law, wages cannot be lower than the previous year," said Airlangga in a video conference held by BNPB Indonesia, Monday, October 12.

Airlangga also emphasized that the minimum wage provisions were not removed in the Job Creation Law. According to him, the Provincial Minimum Wage (UMP) and Regency / City Minimum Wage (UMK) still exist even though the UMP will be the main reference.

"Minimum wages still exist, both for provinces, as well as districts and cities. But the UMP is the minimum limit. UMK must be higher than the UMP, and the governor is the one who determines it," he explained.

Airlangga also dismissed the opinion of various parties that the Job Creation Law opens up opportunities for life-long worker contracts because the regulation does not regulate the maximum time for contract extension.

According to him, the time limit provisions still apply to jobs that can be completed within a certain time. Meanwhile, the provisions for the appointment of workers still apply to permanent jobs.

"It is said that a certain time worker can be contracted continuously, that's wrong. A certain time worker does not apply to a permanent job. This is for a job with a short completion," he said.

Airlangga also denied that the provisions for the import of foreign workers (TKA) would be easier through the Job Creation Law. He explained that the use of foreign workers was based on plans for the use of foreign workers (RPTKA) with regulated conditions.