6 Provinces Raise UMP 2021, Namely DKI, Central Java, East Java, Yogyakarta, Central Sulawesi, Bengkulu

Minister of Manpower Ida Fauziyah (Irfan Meidianto / VOI)

JAKARTA - Minister of Manpower Ida Fauziyah said there are six provinces that have set an increase in the provincial minimum wage (UMP) in 2021, even though the Ministry of Manpower has decided there is no increase in the UMP.

"The six provinces that set the 2021 UMP higher than 2020 are Central Java, DI Yogyakarta, Central Sulawesi, East Java, DKI Jakarta and Bengkulu," Ida said in a working meeting with Commission IX DPR which was covered virtually from Jakarta, reported by Antara, Wednesday, November 25th.

Apart from these six provinces, 27 provinces have determined the UMP 2021 to be the same as the 2020 UMP and one province, namely Gorontalo, has not yet decided.

The decision not to increase the 2021 UMP was stated in the Minister of Manpower Circular Number M / 11 / HK.04 / X / 2020 concerning the Determination of the 2021 Minimum Wage during the COVID-19 Pandemic.

Ida said the Circular was issued by considering the conditions that occurred, an analysis of the impact of COVID-19, and various views and input from trade unions, employers, government, experts and practitioners who are members of the wage council.

According to Ida, the Circular also regulates that the 2021 UMP should not be lower than the 2020 UMP because during the COVID-19 pandemic, it was not only businessmen who were affected but also many parties.

"We issued a Circular on the determination of the 2021 UMP during the pandemic, substantially the UMP did not come down with various scenarios," he said.

The background for determining the 2021 UMP takes into account the latest Indonesian economic conditions and the workforce affected by the COVID-19 pandemic. In addition, in the second quarter of 2020, Indonesia's economic growth contracted by 5.32 percent on an annual basis.