Entrepreneurs Worried About The Increase In UMP 2021 Trigger A Wave Of Layoffs, Ganjar: There Are Also Now

Central Java Governor, Ganjar Pranowo. (Irfan Meidianto / VOI)

JAKARTA - Central Java Governor Ganjar Pranowo gave an explanation to entrepreneurs who disagreed with the results of the UMP 2021 calculation in his leadership area. According to him, the UMP only applies to employees with a period of less than one year.

That is, only for new workers. If a company experiences difficulties and even loses money due to the COVID-19 pandemic, entrepreneurs will definitely take action to save their business. Instead of accepting new staff, employers will actually reduce employee working hours.

Furthermore, Ganjar said, this UMP is not for workers who are over 1 year old. Therefore, he asked, entrepreneurs not to panic. Moreover, regarding the wave of layoffs that will arise as a result of this increase in drinking wages.

"UMP is the minimum limit for workers with a working period of 1 year and below. There are already any layoffs now," he said, when contacted by VOI, Tuesday night, November 3.

Previously, the Indonesian Employers' Association considered 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 decide the amount of 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 should be taken in order to handle and resolve the crisis do not actually 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 a review of Decent Living Needs (KHL), 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 conveyed, so a decision was taken not to raise the UMP in 2021, of course there are quite a few reasons," he said.