The Increase In The Prices Of Basic Necessities Must Be A Consideration For The 2023 Minimum Wage

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JAKARTA - The preparation of the 2023 minimum wage must also take into account the increase in various basic needs. This will have an impact in terms of strengthening people's purchasing power which greatly contributes to economic growth.

"We must be able to strengthen people's purchasing power in the interest of the country's economic growth. One of them is through an increase in the minimum wage for workers," said DPR Speaker Puan Maharani, Wednesday, July 20.

The discussion on the 2023 minimum wage which will begin in August is considered to require a breakthrough according to current needs. According to Puan, the increase in inflation that erodes the people's purchasing power must be dealt with by providing a minimum wage suitability.

"The phenomenon of the high number of basic needs that has the potential to increase can worsen people's purchasing power. If the minimum wage increase is very small, it will certainly have an impact on economic growth," continued Puan.

The average increase in the minimum wage in 2022 nationally is only 1.09 percent. The increase in the minimum wage this year is below inflation which continues to increase and is estimated to touch 5 percent by the end of the year.

“Although Indonesia is predicted to be safe from recession, the state must think about the community, especially the lower middle class. There must be intervention in overcoming the rising prices of basic necessities,” said Puan.

The former Coordinating Minister for Human Development and Culture understands that the minimum wage increase uses a new formula based on the rules in Government Regulation (PP) Number 36 of 2021 concerning Wages. Even so, said Puan, a formula should be made so that the increase in the minimum wage can still increase people's purchasing power.

"So it needs to be proportional and in favor of small communities," he said.

Puan reminded, the increase in various basic needs has eroded people's purchasing power. Especially for people who depend on salaries with minimum wages.

“If the national economic recovery continues, I believe the minimum wage increase can be pushed up more maximally. Because of course there are business sectors that have a positive trend,” said Puan.

"We don't want the already good economic recovery to decline again due to the lack of people's purchasing power," added the grandson of the Indonesian Proclaimer Bung Karno.

Puan also asked the government to make social assistance programs more effective. This is to reduce the burden on the community due to the high prices of basic necessities and the lack of improvement in economic conditions due to the COVID-19 pandemic.

"Intensify direct cash assistance (BLT) programs to the community to maintain purchasing power, such as the Family Hope Program (PKH), Village BLT, Pre-Employment Cards, Wage Subsidy BLT and so on," concluded Puan.