KSPI Asks Menaker To Cancel Decision On 2021 Drinking Wages Will Not Increase

Illustrations (Irfan Meidianto / VOI)

JAKARTA - The Confederation of Indonesian Workers Unions (KSPI) rejects the decision of the Minister of Manpower (Menaker) Ida Fauziyah which does not increase the minimum wage in 2021 from the previous year.

That way, the President of KSPI Said Iqbal asked Menaker Ida to revoke the Circular (SE) Number M / 11 / HK.04 / 2020 regarding the 2021 minimum wage which is set to be the same as the 2020 minimum wage.

"We continue to encourage the government, in this case the Minister of Manpower to revoke the circular. Then, make a new circular which states that there is a corresponding wage increase in the regency / city Wage Council mechanism and the industrial sector," Iqbal said in a virtual discussion, Sunday, November 1st.

Iqbal explained that there were two reasons why his party insisted on asking for an increase in the minimum wage during the COVID-19 pandemic, which resulted in an economic crisis.

First, reflecting on 1998 to 1999. The government had canceled the increase in wages due to economic growth which reached minus 17.6 percent. As a result, workers staged a massive action.

Until finally, said Said, President BJ Habibie at that time decided to raise wages. At that time, Habibie asked the governors, one of which was the Governor of DKI, to increase the drinking wages up to 16 percent.

"The president's hope at that time was simple, consumption must be maintained. This is not the first time we face an atmosphere of the connection between an economic recession, where the economy is experiencing a minus associated with the factor of rising wages in our country," said Iqbal.

Second, wage increases are considered rational when looking at facts on the ground. Iqbal admitted that the tourism, hotel and restaurant sector had indeed suffered a downturn due to the COVID-19 pandemic.

However, this did not happen in the industrial sector. Iqbal said factory areas and multinational companies were still running during the pandemic.

"The fact is clear that the company still has the ability. In case his ability does not match last year's, but still has the ability to raise wages," said Iqbal.

"Therefore, those who are able to raise those who cannot afford have the right not to increase their drinking wages. Finally, the (Menaker) circular letter has no legal ties," he concluded.