JAKARTA - Minister of Manpower (Menaker) Yassierli stated that the government together with several related parties are still formulating the formula for the 2025 Provincial Minimum Wage (UMP).
Yassierli made the statement while attending a limited meeting with President Prabowo Subianto at the Presidential Palace complex, Jakarta, in response to the attitude of labor elements who rejected the 2025 UMP formula proposed by the Ministry of Manpower.
"It's still being formulated. What will be rejected, the formulation has not been completed," he said as reported by ANTARA, Monday, November 25.
He said that the formulation related to the UMP discussed with labor unions and employers is still awaiting President Prabowo's approval.
Meanwhile, the Confederation of Indonesian Trade Unions (KSPI), through its press release, called on President Prabowo to determine the 2025 minimum wage increase policy in accordance with the decision of the Constitutional Court (MK) Number: 168/PUU-XXI/2023.
The Constitutional Court's decision annulled a number of norms in the Omnibus Law on Job Creation Law related to wages and mandated the determination of minimum wages based on inflation, economic growth, and certain indexes (α), without discrimination in industrial sectors.
Workers rejected the draft Permenaker which proposed different minimum wage categories for labor-intensive and capital-intensive sectors.
They also opposed the bipartite negotiation mechanism at the company level to determine minimum wages, which was considered contrary to the Constitutional Court's decision.
Workers asked President Prabowo to prioritize workers' welfare in wage policies while maintaining national economic stability.
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