Indonesia: Workers Demand 2023 Jakarta Minimum Wage to Increase 10.55 Percent

• Nov 23, 2022

TEMPO.CO, Jakarta – Member of the Jakarta Wage Council, Nurjaman, said that workers are proposing for the 2023 minimum wage to increase by 10.55 percent or Rp5,131,000.

“The proposed total increase in workers’ wages in our second meeting at the Jakarta City Hall amounting to Rp5,131,000, does not refer to the issued Ministerial Regulation by the Manpower Ministry (Permenaker) Number 18 of 2022, concerning the 2023 Minimum Wage,” he said in Jakarta, Tuesday.

According to Nurjaman, the workers’ proposal also did not refer to Government Regulation (PP) Number 36 of 2021.

The Permenaker regulation Number 18 of 2022 stipulates a maximum 10 percent increase in the 2023 minimum wages. The government made this rule due to the calculation of the minimum wage when referring to Government Regulation Number 36 of 2021, which is a derivative of the Job Creation Law, has not been able to accommodate the impact of the socio-economic conditions of the community resulting from the pandemic.

However, Nurjaman believes that there are similarities between the Jakarta Indonesian Employer’s Association (Apindo) and workers in determining the basis for the value of 2023 minimum wages, to which both do not refer to Permenaker Number 18 of 2022.

“In our opinion, there are similarities here between Apindo and the labour union, both of them did not accept Permenaker regulation for the determination of the 2023 minimum wage,” he said.

Jakarta Apindo proposes that the minimum wage be increased by 2.62 percent or equivalent to Rp4,763,293, which refers to Government Regulation (PP) 36 of 2021 for determining the proposed 2023 minimum wage.

Meanwhile, employers from the Indonesian Chamber of Commerce and Industry (Kadin) group, proposed the 2023 minimum wage increase by 5.11 percent or equivalent to Rp4,879,053. The Jakarta Provincial Government (Jakarta Pemprov) proposes that the 2023 minimum wage increase by 5.6 percent or Rp4,901,738.

Jakarta Pemprov and Kadin refer to Permenaker regulation Number 18 of 2022 to determine the increase in the minimum wage.

The Wage Council Have Not Reach an Agreement Yet

Nurjaman said that the difference in the basis for calculating the minimum wage increase and the percentage amount led to the Wage Council meeting yesterday to find no agreement.

“Employers, government and workers have not yet reached the same understanding, not one voice,” he said.

However, there are four recommendations related to the 2023 minimum wage value resulting from the second meeting according to suggestions from various members.

“At the end of the meeting, four recommendations were made after there was no agreement from each represented member,” said Nurjaman.

The four recommendations recorded in the meeting will be submitted to Acting Governor of Jakarta Heru Budi Hartono.

ANTARA | IMAJI LASAHIDO (INTERN)

Source: https://en.tempo.co/read/1660073/workers-demand-2023-jakarta-minimum-wage-to-increase-10-55-percent