5 Governors Choose To Raise UMP 2021, Kadin: Get Ready For Mass Layoffs

Illustration. (Angga Nugraha / VOI)

JAKARTA - Deputy Chairperson of the Chamber of Commerce and Industry (Kadin) for CSR and Business Competition Suryani S Motik said that the governors' decision to insist on an increase in the 2021 UMP will have an impact on the threat of termination of employment (PHK) for workers. Moreover, an economic recession was drawing near.

As is known, the government through the Ministry of Manpower issued a Circular (SE) concerning the Determination of the Minimum Wage for 2021 during the Coronavirus Disease 2019 (COVID-19) pandemic. Where, the government decided the value of the amount of wages in 2021 was the same as 2020. However, five governors chose to raise the 2021 UMP.

The five governors who continue to raise the 2021 UMP are Central Java Governor Ganjar Pranowo, Yogyakarta Governor Sri Sultan Hamengkubuwono X, DKI Jakarta Governor Anies Baswedan, South Sulawesi Governor Nurdin Abdullah, and East Java Governor Khofifah Indar Parawansa.

"We know that unemployment has risen, the number of layoffs has risen to 20 million. Then this is the data submitted. Employment data if currently 8.14 million are unemployed, 28 million are part-time jobs, so there are 46.3 million people who do not work full time. , "he said, in a virtual discussion, Wednesday, November 4.

Suryani explained that if Indonesia officially enters the brink of recession, it is certain that the business world will suffer big losses. He admitted that he was worried that the increase in the 2021 UMP would be a problem in the field.

"What is clear is that the business world is certain that if there is a recession of losses, it is impossible to gain profit, except for certain sectors. So if there are still governors who say they want to increase their UMR for companies that do not suffer losses, that is very little. We are worried for entrepreneurs if the UMR- raising it will be a problem in the field. Because almost all businesses are affected by COVID-19, "he said.

Not only that, said Suryani, the implication of this condition is that it will increase the poverty rate in Indonesia. "If it's like that, poverty will definitely increase. So the number of poor people in Indonesia will increase," he said.

Previously, the governor of Central Java, Ganjar Pranowo, had already answered the concerns of entrepreneurs regarding mass layoffs. According to him, the UMP only applies to employees with a period of less than one year. That is, it applies to new workers.

According to Ganjar, 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 does not apply to workers who are over 1 year old. Because of that, he asked, entrepreneurs not to panic about the wave of layoffs that would arise as a result of the increase in drinking wages.

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