DIY Governor Sets 2024 UMP To Increase 7.27 Percent To IDR 2.1 Million

DIY Regional Secretary (Sekda) Beny Suharsono announced the 2024 DIY UMP at Gedhong Pracimasana, Kepatihan Complex, Yogyakarta, Tuesday (21/11/2023) (ANTARA/Luqman Hakim)

YOGYAKARTA - Governor of the Special Region of Yogyakarta Sri Sultan Hamengku Buwono X set the 2024 Provincial Minimum Wage (UMP) at IDR 2,125,897.61, an increase of 7.27 percent from the previous year of IDR 1,981,782.39.

"DIY Province Minimum Wage in 2024 amounted to Rp2,125,897.61 or an increase of Rp144,115.22," said DIY Regional Secretary (Sekda) Beny Suharsono during a press conference at Gedhong Pracimasana, Kepatihan Complex, Yogyakarta reported by ANTARA, Tuesday, November 21.

Beny said the increase in the UMP was decided by the Governor of Yogyakarta Sultan HB X based on the recommendations of the DIY Provincial Wage Council consisting of elements of workers, businessmen, government, and elements of experts or academics.

"This year, the increase in the UMP is quite significant, although there are dynamics here and there," he said.

According to Beny, the 2024 DIY UMP has become a reference for determining the Regency/City Minimum Wage (UMK) in DIY which will be announced by the Governor of DIY on November 30, 2023.

"For UMK, it should be higher than the UMP," he said.

Beny explained that the calculation of the 2024 UMP uses a formula according to Government Regulation (PP) Number 51 of 2023 concerning Wages as a substitute for PP Number 36 of 2021.

Based on a study by members of the DIY Wage Council, he continued, the calculation of the UMP takes into account economic conditions in DIY, especially the inflation rate which is dominantly influenced by several basic commodities consumed by workers and to maintain the purchasing power of workers or laborers.

Next, there was a rationalization of the value of inflation in the food group by 5.97 percent, and the health group by 5.42 percent so that the amount of inflation that had been rationalized from 3.31 percent to 5.70 percent was obtained.

Member of the DIY Wage Council, an academic element, Arif Hartono, said that the rationalization of inflation is purely using an academic approach.

According to him, rationalization is needed because DIY inflation according to data from the Central Statistics Agency (BPS) of 3.31 percent is not fully relevant to the basic needs and necessities of workers if used as a calculation variable for the 2024 UMP.

"If we use inflation released by BPS 3.31 percent which includes approximately 400 commodities, of course not all of them are relevant to basic needs or necessities of life for fellow workers," said this academic from the Islamic University of Indonesia (UII).

Meanwhile, a member of the DIY Wage Council from the Orphan trade union element stated that his party accepted the amount of the increase in the UMP decided by the Governor of DIY as a middle ground for the welfare of workers and employers.

"Perhaps there are those who are not satisfied with this increase, but to be grateful no matter how much the UMP increase from what was given by the Governor of Yogyakarta," said Yatiman.

The Apriyanto team, representatives of the Indonesian Employers' Association (Apindo) DIY agreed to the DIY UMP and are committed to complying with the regulations set regarding the wages that officially apply in 2024.

"We respect, respect, and believe what was conveyed by fellow academics regarding the rationalization of inflation in DIY," he said.