No Need To Complain That The 2024 UMP Only Increases 5 Percent, Save

Developing a budget or budgeting is one way so that family finances do not boncos in order to get around the increase in the 2024 UMP which is no more than 5 percent. (Freepic)

JAKARTA Local governments in Indonesia have announced an increase in the 2024 Provincial Minimum Wage (UMP) on Tuesday (21/11/2023). However, the UMP increase rate is considered far from ideal, causing negative reactions in a number of regions.

Based on the announcement of the 2024 UMP last week, North Maluku experienced the highest increase among other provinces, namely 7.5 percent from Rp2,976,720 to Rp3,200,000. Meanwhile, the province with the least percentage increase was Gorontalo, which only rose 1.19 percent Rp2,989,350 to Rp3,025,100.

Meanwhile, DKI Jakarta, which is often a reference for other regions, remains the province with the highest UMP, which is IDR 5,067,381. But if examined, the percentage increase in Jakarta's UMP is only 3.3 percent.

According to the Executive Director of the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira, the 2024 UMP increase is still too low. He said the ideal UMP increase was above 10 percent.

With the increase in the UMP in each region an average of less than 5 percent, he predicts it will be difficult to deal with inflation next year.

"This is still too small and very disappointing. The 2024 UMP with too low increases could threaten economic growth next year," Bhima told VOI.

Although the increase in the 2024 UMP is considered far from ideal, that does not mean it is not sufficient. Because basically, no matter how much money is generated, the key to a prosperous life is to implement a saving lifestyle.

We certainly still remember by venting on a young mother with three children who were able to own a house and vehicle even though her husband's income was only around Rp. 3,500,000.

"Pasutri frugal living from a salary of 3.5 million can have a house, a car," as quoted from the TikTok account @selyya14.

Indeed, the price of needs in each region is not the same so that the expenditure budget cannot be equated. However, that does not mean that life is efficient and cannot be applied.

Making a budget is considered to be a way to meet needs. By making a budget, it can also help people make decisions that are more confident and even cause peace of mind.

Complaining about that much income is not a solution. According to financial planner Annisa Steviani, the financial problems faced by Indonesian families generally occur due to lack of financial literacy.

In addition, the financial problems that are often experienced by Indonesian families are because they cannot estimate expenses so they do not have emergency funds or insurance.

Many people say 'oh, I'm just looking at it'. What kind of bus is it? Where do you know? How much details do you know, how much more? So if you're sure, then you can find a solution," said Annisa, quoting Antara.

Like other problems, financial problems must also have a solution. According to Annisa, one of the most accurate solutions to solving financial problems is to do financial management or budgeting.

In addition, managing finances also requires communication with a partner, so that a family can manage the flow of expenses.

If we look at it, there are several solutions. First, the budgeting must be smooth. At least you can save 10 percent of your income. If there is a debt, it's not more than 30 percent. Second, prepare emergency funds and insurance," Annisa explained.

Shortly after various regions announced the UMP for next year, the wave of criticism took over heavily. The average UMP increase rate of only 5 percent is considered insufficient to cost life.

In fact, the 5 percent increase has been eroded by inflation by 3 percent. The biggest inflation is in terms of food prices, especially rice, whose prices have continued to creep up in the last few months. This assessment raises the narrative that the increase in the 2024 UMP is only enough to buy rice.

Misuh-misuh terhadap kenaikan UMP 2024 yang tidak sesuai dengan harapan akhir-akhirnya tidak akan menyelesaikan masalah keuangan. Saat ini, yang dibutuhkan adalah bagaimana mengatur keuangan secara bijak, salah satunya dengan membuat anggaran ataubudgeting seperti yang sudah disinggung oleh Annisa Steviani supata keuangan kita tidakboncos.

To make a detailed budget is indeed quite challenging, but that doesn't mean you can't. Coupunfcu.org, one way to plan expenses is to use the 50-30-20 method.

The 50-30-20 expenditure rules divide spending into three categories only. It also offers recommendations on how much money is used for each category, "said UNFCU.

In detail, UNFCU writes that 50 percent of income is budgeted for needs, 30 percent for desire and finally 20 percent for savings. This 50 percent budget includes various main needs such as house installments or vehicles, monthly shopping, and health insurance.

"Payment for at least credit cards or loans is also included in this category," said UNFCCU.

The next category is 30 percent for desire. The desire is to spend money by choice or because of something you like. Budgets for hobbies such as buying books, recreation, eating at a favorite restaurant can also be included in the category of desire.

"Subscription to streaming services to watch favorite shows is included in the category of desire," according to UNFCU.

Lastly, the budget for savings is 20 percent. Of the total income, 20 percent is allocated for future savings. Included in this category are emergency funds or savings for down payment houses.

Saving at least 10 percent of income is among the most echoed by financial planners. This is because family finances in Indonesia often boncos because they do not have savings for the future. Not to mention the online loan phenomenon which is often used as a 'way out' but instead damages family harmony.

Regulating finances, especially in the midst of rising prices for various basic needs, is certainly not an easy thing. However, it cannot be said that it is impossible. Being able to carefully sort out between needs and desires can be an important asset in managing finances so as to achieve a prosperous family.