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Jakarta, CNBC Indonesia – Today, Friday (17/11/2023) the DKI Jakarta Provincial Government held a Wage Council meeting to determine the value of the 2024 DKI Jakarta provincial minimum wage (UMP). The meeting presented several related elements, such as independent experts, universities, the Indonesian Institute of Sciences (LIPI), the Central Statistics Agency (BPS), elements of labor unions, elements of entrepreneurs from Apindo and Kadin, as well as elements of the government.

The trial, which lasted approximately 4.5 hours, starting from 14.00-18.30 WIB, did not immediately reach an agreement, it was even said to be tough. This was conveyed by all parties who took part in the trial, both experts, employers and trade unions.

Expert from the UI Faculty of Economics, Jaenal Abidin Simanjuntak, said that the trial was quite difficult, related to the determination of the provincial minimum wage (UMP) for DKI Jakarta in 2024.


“So there are two poles or two different opinions. First, business actors propose a formula for Government Regulation (PP) 51/2023 with an alpha of 0.2. This means there is a 20% increase in economic growth plus inflation. That is a proposal from Kadin and Apindo ,” said Jaenal when met at the DKI Jakarta City Hall.

Meanwhile, the labor unions, he continued, did not follow the format contained in PP 51/2023.

“They have their own format, namely inflation plus alpha, plus a certain index of around 8.15% so that in total they are demanding a wage increase of 15%. Their demand is that the 2024 UMP is around IDR 5.6 million,” he explained.

Meanwhile, the government element, said Jaenal, continues to use the PP 51/2023 formula with an alpha of 0.3.

“So there were three proposals from the DKI Jakarta Wage Council which will later be determined by the Acting Governor, whether to use an alpha of 0.2 or 20% as proposed by Kadin and Apindo friends, or to use a proposal from the workers’ union, namely a separate formula with an increase of 15% “or the Acting Governor stipulates the government’s proposal, namely alpha 0.3 or 30%,” he said.

Meanwhile, the Wage Council of the Indonesian Employers’ Association (Apindo) Nurjaman said that the wage amount proposed by entrepreneurs was IDR 5,043,000, where this amount was obtained from the calculations contained in PP 51/2023 with an alpha formula of 0.2 or 20% .

“Yes, hopefully the DKI Jakarta government will refer to our hopes, entrepreneurs. So that we can continue to work, develop in running our business. What we hope for is how we can carry on our business so that we have sustainability of work, there is continuity of business, and there is “also continuity of work. That is our hope,” said Nurjaman.

Meanwhile, if the DKI Jakarta government decides in accordance with the government’s proposal, namely with an alpha formula of 0.3, said Nurjaman, the entrepreneurs will consider it.

“But we hope that the DKI Jakarta government will decide what we recommend from the business element,” he said.

Furthermore, the Wage Council of the Workers’ Union, Dedi Hartono, said that the aim of his party’s insistence on a 15% wage increase was not just about wages, because his party wanted to ensure that the wage problem in Indonesia could be resolved properly.

“Because the impact related to policy will ultimately cause wage problems to persist in terms of differences each year,” said Dedi.

“Therefore, the trade union has determined that the alpha figure is around 8.15%. So if economic growth is added to inflation and alpha is added, the figure can reach 15%,” he added.

The figure of 8.15%, he explained, is a figure that has been summarized by the trade union from the impacts related to sectoral wage differences. So this becomes a single unit that is used as a basis for considering a 15% wage increase.

“The figure is the same as what we previously conveyed, workers’ demands increased by 15% to IDR 5.6 million,” he concluded.

[Gambas:Video CNBC]

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