The Wage Council Holds The 2024 DKI UMP Session, The Decision Is In The Hands Of Heru Budi

Illustration of the City Hall of the DKI Jakarta Provincial Government. (Diah-VOI)

JAKARTA - The DKI Jakarta Provincial Government has started holding a Wage Council meeting to determine the value of the increase in the DKI Jakarta provincial minimum wage (UMP) in 2024. The closed Wage Council session involved elements of the government, experts from universities, the Central Statistics Agency (BPS), BRIN (LIPI), labor representatives, and representatives of employers. Head of the DKI Jakarta Manpower, Transmigration and Energy Agency (Disnakertransgi) Hari Nugroho said, this trial resulted in recommendations for determining the value of the 2024 UMP increase. The recommendation was submitted to the Acting Governor of DKI Jakarta Heru Budi Hartono. Then, Heru issued a governor's decision to determine the amount of the UMP value. "After the trial is over, we make recommendations to the Governor to determine the figures. We, the Wage Council, provide advice, all of them to the regions," said Hari at DKI Jakarta City Hall, Friday, November 17. In the formulation of this year's minimum wage increase, the government uses a new formula based on Government Regulation (PP) Number 51 of 2023 concerning Wages. The regulation is stipulated as a substitute for PP Number 36 of 2021. "We already know that there are rules for playing PP 51 2023 as the revision of PP 36 2021. The formula is already there. There can be tried," said Hari.

Calculation or formula for the increase in the minimum wage based on PP Number 51 of 2023 uses 3 variables. The three variables are economic growth (PE), certain indexes, and inflation. It is estimated that the increase in the DKI 2023 UMP using PP reference Number 51 of 2023 is no more than 5 percent of the 2023 UMP. This amount is not commensurate with the demands of the labor group which asks for an increase in wages of up to 15 percent. Hari emphasized that the decision to determine the value of the 2024 UMP will be issued before November 21, 2023. "After tomorrow the trial will run smoothly, there will be 1 number that we will recommend to the governor. Even though (the labor) is a massive demonstration, it can't change. Right, there are already rules for the game," said Hari. For information, the DKI Jakarta UMP in 2023 is IDR 4.9 million. Meanwhile, the labor group demanded the DKI Jakarta Provincial Government to increase the DKI 2024 UMP by at least 15 percent, around IDR 5.6 million to IDR 6 million.