The DKI Provincial Government Has Determined The Increase In The 2023 UMP To 5.6 Percent, The President Of KSPI: No Empathy

Illustrations of demonstration titles in DKI Jakarta (Photo: ANTARA)

JAKARTA - The Confederation of Indonesian Trade Unions (KSPI) rejected the DKI Jakarta Provincial Government's decision regarding the 2023 provincial minimum wage (UMP) amounted to 5.6 percent, an increase to IDR 4,901,798 or IDR 4.9 million. KSPI President Said Iqbal views that the Acting Governor of DKI Jakarta Heru Budi Hartono does not have an empathetic attitude in the survival of the labor group amid rising basic food prices. "(The Acting Governor of DKI (Heru) has no sense of caring and empathy for the workers," Said Iqbal said in a written statement, Monday, November 28. There are a number of reasons why KSPI rejected the increase in the 2023 UMP by 5.6 percent. Said Iqbal explained, this nominal is still below the inflance value from January to December 2022 of 6.5 percent plus economic growth during this year which is estimated at 5 percent. "The increase in UMP and UMK throughout Indonesia should be the amount of inflance and economic growth in each province or district/city in the current year, not using inflation and annual economic growth or year on year," explained Said Iqbal. Therefore, KSPI urged Heru to revise the increase in the DKI Jakarta UMP in 2023 by 10.55 percent in accordance with what was proposed by elements of the labor union who are members of the Wage Council of DKI Jakarta Province. Said Iqbal also threatened workers to hold demonstrations in Jakarta and various other regions again so that their demands were granted. "If the demands above are not heard, starting next week there will be major actions in various regions throughout Indonesia to voice a wage increase of 10 to 13 percent," he explained. The minimum wage in Jakarta increased by around IDR 400 thousand from the 2022 UMP which was previously set at IDR 4,641,854 or IDR 4.6 million in Governor's Decree (Kepgub) Number 1517 of 2021. Currently, the governor's decree regarding the increase in the UMP signed by the Acting Governor of DKI Jakarta Heru Budi Hartono is still being finalized. Later tonight, this governor's decree will be officially issued. Head of the DKI Manpower, Transmigration and Energy Agency (Disnakertrans) Andri Yansyah revealed that the increase in the UMP amounted to 5.6 percent was a proposal from the DKI Jakarta Wage Council from elements of the government at the wage trial last November 22. The government uses variables α (alpha) of 0.2. The alpha variable is the contribution of the workforce to economic growth which forms a certain value from a predetermined value range. The use of alpha variables refers to the Minister of Manpower Regulation (Permenaker) Number 18 of 2022 concerning the Determination of Minimum Wage in 2023. "In accordance with the proposal submitted at the meeting of the wage council, proposing 5.6 percent, in accordance with Permenaker 18 of 2022 using alpha 0.2. So, the DKI Provincial Government UMP for 2023 is IDR 4,901,798," said Andri. The amount of the increase in the UMP is different from the proposal from the elements of entrepreneurs represented by the Indonesian Employers' Association (Apindo) and the Chamber of Commerce and Industry (Kadin), as well as proposals from labor groups. Where, Kadin proposed an increase in the UMP by 5.11 percent which was calculated from the collection of 0.1 alpha variables. Then, Apindo proposed an increase in the UMP 2.62 percent which refers to Government Regulation (PP) Number 36 of 2021 concerning Wages. Meanwhile, the proposal submitted by the workers was 10.55 percent or IDR 5,151,000. This amount is calculated from the value of inflation plus year on year economic growth.