INDEF: Anies Should Increase UMP DKI In All Sectors, Don't Be Responsible

JAKARTA - The policy of DKI Jakarta Governor Anies Baswedan regarding the increase in the provincial minimum wage (UMP) in 2021 in DKI was questioned by economic observer from INDEF, Bhima Yudhistira. Because this UMP increase does not apply to all companies.

In establishing the 2021 UMP, Anies allowed companies affected by the COVID-19 pandemic not to raise wages. Meanwhile, the business sector that is not affected by the pandemic is required to increase wages by 3.27 percent or IDR 4,416,186.

Bhima said, Anies should have set a policy that requires all efforts to raise the minimum wage in 2021, whether affected by the pandemic or not.

"The DKI Pemprov should raise the UMP in all sectors. Don't bear it too, because the concept of the UMP is protection for workers who are vulnerable to poverty or the lowest wages," Bhima said when contacted, Wednesday, November 4.

It is not without reason that Bhima said this. Because, he said, it is difficult to audit which business sector is not and is not affected by COVID-19.

Moreover, the central government also projects that there will be 3 percent inflation in 2021. Do not let, he said, workers who are vulnerable to poverty will fall below the poverty line because their wages do not adjust to inflation.

"If the purchasing power decreases, the losers will be the entrepreneurs and the provincial government itself because the economic recovery is going slower," said Bhima.

Thus, Anies should ignore the Ministry of Manpower's decision. "So, don't pay attention to the Circular Letter Number M / 11 / HK.04 / 2020 from the Minister of Manpower who does not raise wages because the central government is too inclined towards the interests of entrepreneurs," he continued.

Previously, DKI Jakarta Governor Anies Baswedan chose an asymmetric policy in setting the minimum wage in 2021. This is due to the COVID-19 pandemic which has an impact on the economic conditions of some business sectors.

Anies made adjustments to the determination of the value of the provincial minimum wage (UMP) in 2021 with the 2020 UMP for companies affected by the COVID-19 pandemic.

However, there are still business sectors that are not too affected and can even continue to grow positively during this pandemic. Thus, the business sector that was not affected by the pandemic in Jakarta experienced an increase in the minimum wage of 3.27 percent.

In order to be exempt from the rules for increasing the UMP, the company must make an application letter and be equipped with a financial report for the last year. Thus, it will be known whether the company was affected by a pandemic or not. However, for companies that do not make applications, they are considered capable of increasing wages according to the 2021 UMP regulations.