Patience Yes Laborer, UMP DKI Jakarta 2021 Is Estimated Not To Increase

JAKARTA - DKI Jakarta's provincial drinking wage (UMP) in 2021 is not expected to increase. This is due to the impact of the COVID-19 pandemic which has hit the national economy. The reference for determining the UMP is recorded in Government Regulation (PP) No 78 of 2015.

Chairman of the DPD Jakarta Indigenous Indonesian Entrepreneurs Association (HIPPI) Sarman Simanjorang explained, the World Bank predicts Indonesia's economic growth in 2020 will contract by minus 2 percent. On the other hand, annual inflation based on Bank Indonesia data up to October was 1.41 percent.

Referring to the rules in Government Regulation Number 78 of 2015, one of the indicators of calculating UMP is based on economic growth in a region. Now, considering that the economy is in crisis, it is certain that the amount of the 2021 UMP is the same as the previous year or there is no increase.

"With data on economic growth and inflation in 2020, the UMP 2021 increase is estimated at 0 percent," he said, in a written statement received by VOI, Wednesday, October 21.

Sarman assessed that the absence of an increase in the 2021 UMP is a natural thing. This is because the COVID-19 pandemic has hit the business world, where many micro and small businesses (UKM) have closed, layoffs (layoffs) and workers have been laid off, the cash flow of entrepreneurs is increasingly worrying and ultimately people's purchasing power has decreased.

"On the other hand, the current condition of the business world also does not allow the UMP to be raised. The burden on entrepreneurs is very heavy. Being able to survive during this pandemic is grateful. If the UMP is raised it will severely hit entrepreneurs and encourage entrepreneurs to decline," he said.

According to Sarman, even if there are certain sectors that allow increasing the UMP, such as telecommunications and health, it can be negotiated on a bipartite basis.

However, Sarman assessed that in general the condition of business actors was very worrying. He hopes that trade unions or laborers can understand this condition and do not demand an excessive increase in the UMP in a situation and economic conditions that have entered into a recession.

For your information, based on Government Regulation Number 78 of 2015 concerning Wages, the governor will determine the UMP for the following year every November 1, thus the increase in UMP 2021 will be officially determined at the end of October and announced simultaneously on November 1, 2020.

Until now, the determination of the UMP in 2021 continues to use a formula based on PP Number 78 of 2015, namely the UMP for the current year plus the multiplication of the UMP for the current year with economic growth and national inflation.