JAKARTA - The Provincial Government of East Java has set an increase in the Provincial Minimum Wage of 5.65 percent, from the previous IDR 1,768,000 to IDR 1,868,777 in 2021.
East Java Governor Khofifah Indar Parawansa said the decision to raise the UMP for East Java Province by around Rp100,000 had been agreed at a joint meeting with the Wages Council of East Java Province last week.
"The Wage Council reported to me, in the end it was decided that there was an increase in the UMP of Rp. 100,000, or equivalent to 5.65 percent of the previous UMP," said Khofifah, in Malang City, East Java, as reported by Antara, Sunday, November 1.
Khofifah added that the decision was stipulated in the Decree of the Governor of East Java Number 188/498 // KPTS / 013/2020 concerning the East Java Province Minimum Wage in 2021, which was signed on October 31, 2020.
In the regulation, it is stated that entrepreneurs who have given wages higher than the stipulated UMP are prohibited from reducing or lowering wages, then employers are prohibited from paying wages lower than the stipulated UMP.
"When we decide on the UMP, then actually, this UMP is valid until there is a Regency / City Minimum Wage (UMK) decision," said Khofifah.
Meanwhile, Chairman of the All Indonesian Workers Union (SPSI) East Java, Ahmad Fauzi, said that the decision to raise the East Java UMP should not be based on an emotional decision, and must continue to ensure that the industrial sector can still run.
"The increase in UMP this year should not be based on emotion, but must convince all parties that industrial life must continue," said Fauzi.
Fauzi added that the increase in the UMP, although small, should be continued to be grateful for all trade unions, labor leaders, including all business actors in the East Java region.
"To all trade unions, labor leaders, we must be grateful. There is no need to lament that this is a small increase. And for the business world, there is no need to be sad," said Fauzi.
Fauzi added that not all industrial sectors in the East Java region were affected by the COVID-19 pandemic. In fact, not a few companies have experienced increased productivity amid the COVID-19 pandemic.
In the province of East Java, the minimum UMK amount is Rp1,913,000, or higher than the announced East Java UMP. In the East Java region, there are nine districts that set the UMK of Rp1,913,000.
The nine regions are Sampang, Situbondo, Pamekasan, Madiun, Ngawi, Ponorogo, Pacitan, Trenggalek, and Magetan districts.
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