Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) issued new regulations regarding wages through Government Regulation (PP) No. 51/2023 which is a revision of Government Regulation No. 36/2021 concerning Wages. This new PP is the legal basis for determining the UMP (provincial minimum wage) and UMK (city/district minimum wage) in 2024.
This new PP on Wages was promulgated and took effect on November 10 2023. The government and related parties are increasingly speeding up discussions on determining wages for 2024.
“This afternoon we will have a meeting with the Minister (of Manpower), preparing to determine the 2024 UMP,” said Member of the 2023-2026 National Wage Council from business circles, Sarman Simanjorang, to CNBC Indonesia, Tuesday (13/11/2023).
He further said that the business world welcomed the issuance of the PP, bearing in mind that at the end of this month the Governor will determine the UMP and the Regent/Mayor will determine the UMK for 2024 and it is hoped that all parties can respect and comply with these provisions.
“The business world hopes that in determining the 2024 UMP/UMK they will really look at the national economic conditions and the global economic threat which is currently not good, so that requests for increases in the UMP must be realistic by taking into account inflation, economic growth and certain indices or symbolized in the form “α as stipulated in PP No. 51 of 2023,” said Sarman.
In determining a certain index for Economic Growth (PE) recommended by the Wages Council, it must reflect the economic and employment conditions in the area, so as not to cause turmoil in industrial relations which disrupts labor absorption.
“There are dynamics and differences of opinion regarding the issuance of PP No. 51 and in determining the 2024 UMP and UMK to prioritize dialogue, communication and deliberation to reach consensus, avoiding demonstrations and threats of strikes which create a less conducive investment climate,” said Sarman.
[Gambas:Video CNBC]
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