Workers Want To Strike The Nationals, Apindo: Increase In UMP Will Trigger Mass Layoffs

The Confederation of Indonesian Trade Unions took to the streets for a demonstration on Monday 2 November. (Diah Ayu Wardani / VOI)

JAKARTA - The Indonesian Employers' Association considers the decision of a number of governors to continue to raise the provincial minimum wage (UMP) in 2021 to complicate the conditions of the business world. In fact, it is expected to trigger a wave of mass layoffs (layoffs).

Chairman of the Indonesian Employers' Association (Apindo) Hariyadi Sukamdani said the decision to raise the UMP was not in accordance with the Circular (SE) of the Minister of Manpower (Menaker) Number M / 11 / HK.04 / 2020 concerning Determination of the Minimum Wage for 2021. Where, the government decided the value of the wages in 2021 is the same as 2020.

"By setting wages that are not in accordance with the SE, we will certainly make it more difficult for the business world which in the end will cause a massive wave of layoffs in a crisis situation," he said, in a virtual press conference, Monday, November 2.

Furthermore, he said, in the current condition, all elements should promote a sense of the crisis that occurred. In this way, all the actions and decisions that are taken to handle and resolve the crisis will not worsen the condition.

According to Hariyadi, the stipulation that is not in accordance with the Ministerial Decree should refer to Government Regulation Number 78 of 2015 based on the KHL review, not by taking a separate, unfounded discretion.

On the other hand, Hariyadi admitted, basically, entrepreneur associations also find it difficult to accept the Ministerial Decree. This is because in a situation of economic downturn the minimum wage should be lowered. So that the continuity of work for workers can be maintained.

"In the discussion all the positions of each element have been submitted, so a decision was taken not to raise the UMP in 2021, of course there are quite a few reasons," he said.

As is known, several local governments have chosen to continue to raise the minimum wage in 2021, namely, DKI Jakarta Governor Anies Baswedan, Central Java Governor Ganjar Pranowo, to East Java Governor Khofifah Indar Parawansa.

The governors' decision contradicts the decision of the central government through a circular letter (SE) of the Minister of Manpower Number M / 11 / HK.04 / 2020 concerning Determination of the Minimum Wage for 2021 during the Corona Virus Disease 2019 (COVID-19) Pandemic.

In the regulation that was signed on October 26, 2020, Minister of Manpower Ida Fauziyah explained that the COVID-19 pandemic has an impact on economic conditions and the ability of companies to fulfill workers / labor rights including paying wages. Thus, it is necessary to make adjustments to the determination of the minimum wage in the situation of economic recovery during the pandemic.

Ida asked the governor to set and announce the 2021 provincial minimum wage on 31 October 2020. The government also requested that the value of drinking wages in 2021 be the same as 2020.

As well as asking the governor to carry out the determination of the minimum wage after 2021 in accordance with the provisions of laws and regulations.

"In connection with this matter asked the Governor to submit the circular to the Regent / Mayor and related stakeholders," he said.

According to Ida, the stipulation not to increase the minimum wage in 2021 in the SE is a middle way taken by the government.