Entrepreneurs in DKI Still Want to Use PP 36/2021 for UMP 2023

BETWEEN PHOTOS/Aditya Pradana Putra/nz.)

JAKARTA - Deputy Chairman of the Provincial Executive Board of the Indonesian Employers' Association (Apindo) DKI Jakarta Nurjaman admitted that his party still wants to use Government Regulation Number 36 of 2021 concerning Wages as the basis for determining the provincial minimum wage (UMP) of DKI Jakarta in 2023.

In fact, the central government has issued the Minister of Manpower Regulation Number 18 of 2022 as the basis for determining the increase in the minimum wage next year.

"We are still guided by the regulation, namely PP Number 36 of 2021", said Nurjaman, Monday, November 21.

Nurjaman also responded to the labor group's desire for the DKI Jakarta UMP to increase by 13 percent by 2023. Nurjaman sees this request as not a problem. However, workers must also see the ability of employers to accept the wage increase.

"The key word at this time is not to think about welfare, but now to think first about business continuity and work continuity. If the company closes, what do you do? Therefore, how about business continuity first. After that, work continuity", he explained.

For information, the Ministry of Manpower issued the Minister of Manpower Regulation No. 18 of 2022 concerning Minimum Wage Determination in 2023, one of which stipulates that the adjustment of the minimum wage value should not exceed 10 percent.

Several provisions in it emphasize that the minimum wage value adjustment for 2023 is calculated using a calculation formula taking into account the variables of economic growth, inflation, and certain indexes. The data used is also sourced from authorized institutions in the field of statistics.

Meanwhile, Article 7 states that the determination of the adjustment of the minimum wage value must not exceed 10 percent. In addition, if the calculation result of the adjustment in the value of the minimum wage exceeds 10 percent, the Governor determines the minimum wage with an adjustment of a maximum of 10 percent.

In Permenaker Number 18 of 2023, it is also written that the 2023 UMP is set by the governor and announced no later than November 28, 2022. The governor can also set the 2023 UMK and announced it no later than December 7, 2022.