Jakarta UMP 2025 Announced After The 2024 Pilkada, Will It Increase?

Illustration of workers in Jakarta using the Commuter Line (ANTARA) mode

JAKARTA - The Provincial Government (Pemprov) of Jakarta has postponed the announcement of the 2025 provincial minimum wage (UMP) until after the 2024 Regional Head Election (Pilkada).

"We are still waiting for implementing and technical instructions from the center. We are currently still in the discussion stage with the National Wage Council," said Head of the Jakarta Manpower, Transmigration and Energy Service (Disnakernatrgi), Hari Nugroho, at Balai Sudirman, South Jakarta, Thursday, November 21.

Hari memperkirakan pengumuman UMP Jakarta 2025 akan dilakukan setelah Pilkada berlangsung. "Mudahan-mudahan dalam waktu dekat, mungkin usai pilkada. Narasinya baru akan siap," katanya tanpa memberikan tanggal pasti.

Meanwhile, the Minister of Manpower Yassierli explained that his party is finalizing the formulation of the UMP calculation which is targeted to be completed by the end of November 2024. "The process is still ongoing, and we also need to consult with President Prabowo Subianto to get directions regarding this decision," said Yassierli.

Yassierli added that the calculation of the 2025 Jakarta UMP will use a new formula in accordance with the decision of the Constitutional Court (MK) which granted part of the trade union's lawsuit against the Job Creation Act.

"This Formula will adopt changes to the value of alpha, namely the labor contribution index to economic growth," he explained.

In Government Regulation (PP) Number 51 of 2023 which revised PP Number 36 of 2021 concerning Wages, alpha is set in the range of 0.10 to 0.30.

This step shows the government's seriousness in ensuring that decisions related to the UMP are made based on formulas that comply with new legal rules and pay attention to the balance between the needs of workers and the ability of employers.