Agreeing The Jakarta UMP 2023 So IDR 4.9 Million, The DKI DPRD The Accommodation Value Of Workers And Entrepreneurs

DKI Jakarta DPRD. (Between)

JAKARTA - A number of factions of the DKI Jakarta DPRD agree that the increase in the provincial minimum wage (UMP) in DKI Jakarta by 5.6 percent to Rp4.9 million in 2023 is appropriate. This value is considered to have accommodated both parties, both workers and employers.

In this case, workers who are members of the Confederation of Indonesian Trade Unions (KSPI) reject the increase in the DKI UMP that has been set by the Acting Governor of DKI Jakarta Heru Budi Hartono and demand that the UMP increase by 10.55 percent.

Likewise, the entrepreneur group, namely the Indonesian Employers' Association (Apindo) which wants an increase in the UMP to only 2.62 percent.

Member of the PDIP faction of the DKI Jakarta DPRD, Gilbert Simanjuntak, said that the value of the 5.6 percent UMP increase was the middle way for the DKI Provincial Government not to burden one party.

"I think DKI has calculated a rational number on both sides. That figure is more moderate. A 10 percent UMP is certainly difficult for entrepreneurs. If the figure is 2.6 percent, of course, workers will not accept it," Gilbert told reporters, Wednesday, November 30.

Meanwhile, member of the PSI faction of the DKI Jakarta DPRD, Justin Adrian Untayana, asked all parties to understand that determining the amount of wages cannot only prioritize the condition of one group, either only employers or workers.

Because, if there is no mutual understanding, the economic downturn towards a recession in Indonesia will inevitably occur. Given, world economists have predicted the potential for an economic crisis in 2023.

"I think the benchmark for the level of economic growth and inflation rating should be the realm of understanding by the parties. A common ground and mutual cooperation must be carried out between the labor organization and the company," said Justin.

Deputy Chairperson of the DKI DPRD from the PAN faction, Zita Anjani, also views that the increase in the Jakarta UMP which has increased by 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.

For information, 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 government uses a rising variable (alpha) of 0.2. The alpha variable is the contribution of the workforce to economic growth which forms a certain value from a predetermined range of values.

The use of alpha variables refers to the Minister of Manpower Regulation (Permenaker) Number 18 of 2022 concerning the Determination of Minimum Wage in 2023.