UMP And UMK 2025 West Java: An Inclusive Increase, Challenges Still Exist

Deputy Chairman of the West Java Regional People's Representative Council (DPRD), Iwan Suryawan (doc West Java DPRD)

BOGOR Deputy Chairman of the West Java Regional People's Representative Council (DPRD), Iwan Suryawan, appreciated the determination of the Provincial Minimum Wage (UMP) and Regency/City Minimum Wage (UMK) in 2025.

This determination is considered capable of reflecting the balance between the needs of decent living (KHL) for workers with the ability of the business world to maintain regional economic stability.

In his statement in Bogor City on Saturday, December 21, Iwan explained that the process of determining the UMP and UMK 2025 had gone through various important stages. This process involves intensive discussions between the provincial government, trade unions, employers' associations, and economists.

According to him, a transparent and dialogical approach is a significant step in creating justice for all parties involved.

"We appreciate the transparent and dialogical steps taken by the West Java Provincial Government in establishing the UMP and UMK. This proves the commitment to protecting workers' rights, as well as maintaining the investment climate in West Java. This is very important to ensure the provincial economy continues to grow sustainably," he said.

Based on this decision, the West Java UMP in 2025 was set at IDR 2,191,238, an increase compared to the previous year which only reached IDR 2,057,495.

Meanwhile, UMK in 27 regencies/cities also recorded varying increases. The highest UMK was recorded in Bekasi City at IDR 5,690,752.95, while the lowest was in Banjar City at IDR 2,204,754.48.

Iwan emphasized that this determination is not only a form of protection against workers' rights, but also creates opportunities for the growth of a healthy and conducive business climate in West Java. He hopes that this policy can be the basis for encouraging more inclusive economic growth.

The determination of the UMP and UMK must be the first step to improve the welfare of workers and their families. But on the other hand, we must also ensure that the business sector continues to grow well. Synergy between the government, workers, and entrepreneurs is needed to maintain economic and social stability in West Java," he said.

Iwan, who is also the Treasurer of the West Java DPW, added that the improvement in workers' welfare through wage policies must be followed by strengthening labor productivity. Thus, West Java's competitiveness as one of the provinces with the largest economic contribution in Indonesia can be maintained.

However, the determination of the UMP and UMK is often inseparable from various challenges. Several business sectors, especially small and medium enterprises (SMEs), often complain about the impact of increasing their minimum wage on their operational costs.

Therefore, local governments are also encouraged to provide supporting programs, such as labor training, small business subsidies, and other incentive policies.

"We cannot deny that every policy has consequences. Therefore, anticipatory and strategic steps are needed so that the negative impact of increasing the minimum wage can be minimized, especially for small business actors. Thus, the balance between workers' welfare and the sustainability of the business world can be achieved," added Iwan.

The people of West Java also welcomed this decision, although there is hope that the increase can really have an impact on the welfare of their lives. In addition, they also hope that the government will continue to oversee the implementation of this policy so that it runs according to the rules that have been set.

With balanced policies, it is hoped that West Java can create an economic ecosystem that is inclusive and able to attract more investment, so that it contributes to more equitable economic growth in the future.

Previously, the Governor of West Java stated that this increase was based on a formula regulated in Government Regulation no. 36 of 2021 concerning Wages, taking into account inflation and economic growth.

"We are trying to make this decision accommodate the needs of workers, but also be realistic to be applied by business actors," said West Java Governor Bey Machmudin.

Unions in West Java welcome this increase, although some still hope that there will be an evaluation of the wage formulation to better reflect the real needs of workers.

Meanwhile, entrepreneurs hope that this increase will not burden the industry, especially in sectors that are still affected by post-pandemic economic recovery.