Workers Don't Accept The DKI Jakarta UMP 2023 IDR 4.9 Million, PAN: Many Companies Still Objected

Workers hold demonstrations to fight for wage increases. (Between)

JAKARTA - Deputy Chairperson of the DKI Jakarta DPRD from the PAN faction, Zita Anjani, views that the increase in the DKI Jakarta provincial minimum wage (UMP) in 2023 of IDR 4.9 million is quite large.

Meanwhile, the labor group did not agree with the nominal value of the DKI UMP. Workers want the DKI UMP to increase to IDR 5.1 million. Zita doubts that employers are able to pay wages according to the wishes of the workers.

"I just saw the facts on the ground with a salary of Rp. 4.9 million, there are still many tough companies. Especially if it's Rp. 5.1 million. I hope it can be Rp. 5.1 million, but we will see the capabilities of our entrepreneurs in DKI," Zita told reporters, Wednesday, November 30.

According to Zita, Jakarta's UMP, which has increased 5.6 percent from 2022, is very appropriate. Given, Indonesia is currently facing a recession threat.

If the UMP is too high, he continued, it is feared that many companies will not be able to pay salaries, causing layoffs (PHK) to many of their employees.

"Later, how will the recession reach Indonesia? We are a food-based country. So, we must remain anticipated. Don't put too much pressure on entrepreneurs. If you can't afford it, it will collapse all the economy. Entrepreneurs are unable to pay their employees," explained Zita.

In this condition, the minimum wage in Jakarta increased by around Rp259 thousand from the 2022 UMP which was previously set at Rp4.6 million. The increase in the UMP by 5.6 percent is a proposal from the DKI Jakarta Wage Council from the government element at the wage trial last November 22.

The President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal views that Heru does not have an empathetic attitude in the survival of labor groups amidst the increase in the price of basic commodities in determining the amount of the UMP.

"(The Acting Governor of DKI (Heru) has no sense of caring and empathy for the workers," said Said Iqbal.

There are a number of reasons why KSPI rejected the increase in the 2023 UMP by 5.6 percent. Said Iqbal explained, this nominal is still below the inflance value from January to December 2022 of 6.5 percent plus economic growth during this year which is estimated at 5 percent.

"The increase in UMP and UMK throughout Indonesia should be the amount of inflance and economic growth in each province or district/city in the current year, not using inflation and annual economic growth or year on year," explained Said Iqbal.

Therefore, KSPI urged Heru to revise the increase in the DKI Jakarta UMP in 2023 by 10.55 percent in accordance with what was proposed by elements of the labor union who are members of the Wage Council of DKI Jakarta Province.

Said Iqbal also threatened his party to sue the decision of the DKI Jakarta UMP in 2022 to the Jakarta State Administrative Court (PTUN) with the charge of revoking the Governor's Decree No. 1153 of 2022.

"The DKI trade union organization will sue the DKI Administrative Court and take action at the DKI City Hall next week," he said.