Jakarta, CNBC Indonesia – Minister of Manpower (Menaker) Ida Fauziyah said that the formula for calculating the increase in the minimum wage for 2024 as regulated in Government Regulation (PP) No. 51/2023 concerning Wages meets and is closer in terms of any theory related to wage regulation. He also remained unmoved and was not afraid if the new regulations regarding wages were protested.

Ida said that Minister of Manpower Regulation (Permenaker) No. 18/2022 concerning wages is only valid for 2023, while for 2024 and beyond it already has a new legal umbrella, namely PP No. 51/2023 concerning Wages as a replacement for PP No. 36/2021 . This regulation also includes a new calculation formula for the Minimum Wage.

“Minister of Manpower Regulation No. 18/2022 only applies to (minimum wage calculations) in 2023. For (minimum wage calculations) 2024 and beyond we already have a legal umbrella which, according to several academic views, this regulation is much more compliant from any theoretical perspective, especially “close to any theory related to wage regulation. This is what academics convey, PP Number 51 of 2023 has been issued,” explained Ida in a Working Meeting (Raker) with Commission IX DPR RI, Tuesday (14/11/2023).

According to Ida, the process of designing PP number 51 of 2023 is the longest process for absorbing aspirations, both before the PP is drafted and when the drafting has been completed or has become a Draft Government Regulation (RPP).

“So, thank God, it has come out at the right time, from last night until tomorrow we have been conducting socialization with the Head of the Manpower Office (Employment Service). The hope is that because this is also an aspiration from many fellow workers, hopefully this PP will be accepted as a form of effort to bring interests between employers closer and workers,” he said.

As for the process of absorbing aspirations, said Ida, it has started to be carried out since April 2023.

“Absorb aspirations, from April this year we have started to absorb aspirations,” he said when confirmed.

Furthermore, Ida admitted that she was not afraid if PP No. 51/2023 was protested by workers’ unions and employers.

“Yes, if you protest, that is your friend’s right. But I want to convey that the process of drafting this PP starts from absorbing aspirations. When drafting this PP we have absorbed aspirations, everything is well documented, after it becomes a RPP we also absorb aspirations “So there is a public consultation, the public consultation includes absorbing aspirations,” he said.

“This is what I said earlier from academic friends, this is closer to any theories, this is not me saying it, I’m just saying what my friends said,” added Ida.

[Gambas:Video CNBC]

(dce)