Both Entrepreneurs And Workers Disagree That The 2023 Jakarta UMP Will Increase To IDR 4.9 Million

Illustration of the City Hall of the DKI Jakarta Provincial Government. (Diah-VOI)

JAKARTA - The DKI Jakarta Provincial Government's decision regarding the increase in the Jakarta provincial minimum wage (UMP) for 2023 has been opposed here and there. Both employers' and laborers' groups disagreed that the DKI UMP would increase by 5.6 percent or become IDR 4.9 million.

Under these conditions, the minimum wage in Jakarta has increased by around IDR 259,000 from the 2022 UMP, which was previously set at IDR 4.6 million. The 2023 UMP increase is stipulated in Governor Decree Number 1153 of 2022.

Head of the DKI Manpower, Transmigration and Energy Agency (Disnakertrans) Andri Yansyah revealed that the 5.6 percent increase in the UMP was a recommendation from the DKI Jakarta Wage Council from government elements at the wage meeting last November 22.

The government uses a variable α (alpha) of 0.2. The alpha variable is the contribution of labor to economic growth in the form of a certain value from a predetermined range of values.

The use of the alpha variable refers to the Regulation of the Minister of Manpower (Permenaker) Number 18 of 2022 concerning the Determination of the Minimum Wage for 2023. This UMP increase

"In accordance with the proposal submitted at the meeting of the wage council meeting, proposing 5.6 percent, in accordance with Permenaker 18 of 2022 using an alpha of 0.2. So, the DKI Provincial Government's UMP for 2023 is IDR 4,901,798," said Andri on Monday, November 28.

Vice Chairman of the Indonesian Employers' Association (Apindo) DKI Jakarta, Nurjaman also emphasized that his party refused to increase the DKI UMP by 5.6 percent because it was not in accordance with their proposal.

Nurjaman emphasized that his party still wants the DKI UMP to increase by 2.6 percent or to IDR 4.7 million. This amount refers to calculations in Government Regulation (PP) Number 36 of 2021 concerning Wages.

"Apindo DKI still refers to PP 36/2021. The UMP increase is 2.6 percent," said Nurjaman in a text message.

Likewise with the labor group. KSPI President Said Iqbal views that Acting (Pj) Governor of DKI Jakarta Heru Budi Hartono does not have an empathetic attitude in the survival of the labor group amid rising prices of basic commodities in determining the UMP amount.

"(Pj) Governor of DKI (Heru) has no sense of care and empathy for workers," said Said Iqbal in a written statement.

There are a number of reasons KSPI refuses to increase the 2023 UMP by 5.6 percent. Said Iqbal explained, this nominal is still below the January to December 2022 inflation rate of 6.5 percent plus economic growth this year which is estimated at 5 percent.

"The increase in UMP and UMK throughout Indonesia should be as big as inflation and economic growth in each province or district/city in the current year, not using annual or year-on-year inflation and economic growth," explained Said Iqbal.

Because of this, KSPI urged Heru to revise the 2023 DKI UMP increase of 10.55 percent according to what was proposed by the trade union elements who are members of the DKI Jakarta Provincial Wage Council.

Said Iqbal also threatened the workers to hold demonstrations again in Jakarta and various other areas so that their demands would be granted.

"If the demands above are not heard, starting next week there will be big actions in various regions throughout Indonesia to call for a wage increase of 10 to 13 percent," he explained.