Jakarta, CNBC Indonesia – The DKI Jakarta Provincial Government held a Wage Council meeting to determine the value of the 2024 DKI Jakarta provincial minimum wage (UMP). The session, which lasted approximately 4.5 hours, starting from 14.00-18.30 WIB, did not immediately find an agreement, there were three different recommendations for the proposed increase in the UMP for DKI Jakarta in 2024.
From the entrepreneur element, the Wage Council of the Indonesian Employers’ Association (Apindo) Nurjaman said that his party from the entrepreneur element, namely Apindo and Kadin, recommended an increase in wages in accordance with Government Regulation (PP) 51/2023 concerning wages.
“Well, the amount proposed by Apindo and Kadin refers to PP 51/2023 with an alpha formula of 0.2. So the amount of the Provincial Minimum Wage proposed by us entrepreneurs is IDR 5,043,000,” said Nurjaman when met at DKI Jakarta City Hall, Friday ( 11/17/2023).
The proposal from the trade unions or laborers apparently comes from PP 51/2023, which refers to the request for a 15% increase.
The Wages Council from the Workers’ Union or Labor Union element, Dedi Hartono, said that his party recommended that alpha be set at around 8.15%. So, if economic growth is added to inflation and an alpha of 8.15% is added, we get a wage increase of 15%.
“The figure of 8.15% is a figure that we summarize from the impacts related to sectoral wage differences. So this becomes a single unit that we use as a basis for considering a 15% wage increase. Meanwhile, the wage figure is the same as what we have conveyed previously, the demands “workers increased by 15% to IDR 5.6 million (per month),” explained Dedi.
Meanwhile, from the government and experts, as stated by an expert from the UI Faculty of Economics, Jaenal Abidin Simanjuntak, the 2024 DKI Jakarta UMP increase still refers to PP 51/2023 with an alpha formulation of 0.3 or 30%.
“From myself (expert element), from the start I proposed an increase of 0.3 or 30% because the worker contribution was already worthy of 0.3 alpha. This is also because there are other considerations from me, related to the median wage in DKI which is still far from higher than the current UMP, so the consideration could be even higher than the business actor’s proposal,” explained Jaenal.
“In addition, the expert’s suggestion is related to the gap between DKI’s wages and Karawang and Bekasi, so that DKI must catch up with Karawang and Bekasi’s wages. Plus it is related to Indonesia’s wages which are still relatively low compared to Southeast Asia, so this consideration is indeed better than the perpetrator’s proposal business.”
“In addition, if we look at the increase in the UMP, it is 4.61%, while the proposal is 0.3, it is 3.88%. So the expert’s proposal is 0.3. The expert’s proposal is the same as the government,” he concluded.
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