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Indonesia: Minister projects minimum wage in 2023 relatively higher than 2022
The minimum wage in 2023 will be relatively higher than the minimum wage in 2022, with data on economic growth and inflation
Jakarta (ANTARA) – Manpower Minister Ida Fauziyah affirmed that by taking into account the data on economic growth and inflation, the minimum wage for 2023 will be relatively higher than that in 2022.
“The minimum wage in 2023 will be relatively higher than the minimum wage in 2022, with data on economic growth and inflation,” the minister stated during a working meeting with Commission IX of the Indonesian House of Representatives (DPR RI) here on Tuesday.
She noted that Indonesia’s economic growth had continued to show improvement since the second quarter of 2021, with the country’s economic strength in household consumption that reached 50.38 percent of the total gross domestic product (GDP) in the third quarter of 2022.
Fauziyah also said international institutions projected that Indonesia’s economic growth can still increase, with a relatively controlled annual inflation rate as compared to other countries.
Preparations for setting the minimum wage for 2023 had started since September 2022 when the Ministry of Manpower submitted a letter to Statistics Indonesia (BPS) regarding the request for data as one of the reference points to determine the minimum wage in the following year.
The ministry also held a dialog with employers and trade and labor unions as well as the Wage Council in the province to get inputs.
The minister admitted that there were some differences in inputs from employers and workers. The employers suggested the determination to be made using Government Regulation Number 36 of 2021 on Wages since it was more realistic.
Meanwhile, the workers suggested that the derivative rules of the Job Creation Law cannot be used as a basis to determine the minimum wage in 2023. Workers also proposed a special policy by considering the increase in fuel prices and the global crisis.
“These inputs must also be encouraged to apply wages other than the minimum wage, specifically a decent wage, such as a wage scale structure,” Fauziyah added.
Source: https://en.antaranews.com/news/259073/minister-projects-minimum-wage-in-2023-relatively-higher-than-2022