North Sumatra Provincial Government Sets 2024 UMP To Increase By 3.67 Percent

Acting Governor of North Sumatra Hassanudin (ANTARA/Anggi Luthfi Panggabean)

MEDAN - The Provincial Government of North Sumatra has set a nominal value for the 2024 Provincial Minimum Wage (UMP), which is IDR 2,809,915, an increase of 3.67 percent from the 2023 UMP which is IDR 2,710,493.

Acting Governor of North Sumatra, Hassanudin said this determination was based on a joint calculation of the wage council using the new formula of the Ministry of Manpower as stated in PP Number 51 of 2023.

"This decision was taken after considering the recommendations and suggestions of the North Sumatra Provincial Government Wage Council. In addition, fluctuating economic growth due to global geopolitical, inflation and worker welfare in North Sumatra is also an indicator of the determination of the UMP using the PP formula Number 51 of 2023," Hassanudin said after the UMP Determination Coordination Meeting, in Medan reported by ANTARA, Tuesday, November 21.

Hassanudin explained that his party will form a monitoring team to ensure that the wage structure is applied to all companies in North Sumatra.

"We will form a monitoring team to ensure this is implemented and for regencies/cities according to their respective regional conditions, but still refer to existing regulations," said Hassanudin.

He said that after the decision would be submitted by the Central Government, and regulations would be announced simultaneously on Tuesday, November 21, 2023.

"Regulatively, the Governors throughout Indonesia on November 21, 2023, in accordance with PP 51 of 2023, all governors, by setting the UMP," he said.

In addition, Hassanudin also ensured that the North Sumatra Provincial Government together with the Regional Inflation Control Team (TPID) would continue to strive to maintain economic growth and inflation.

Based on the Central Statistics Agency, North Sumatra's economic growth for the third quarter was 4.94 percent and inflation was 2.15 percent (yoy) in September 2023.

"We will continue to try to control inflation together with other stakeholders so that basic materials can be reached by our workers. I also recommend to workers to join cooperatives, so that government programs are easily accessible, such as food operations, training and others," he said.