Jakarta, CNBC Indonesia – The Ministry of Manpower (Kemenaker) has opened its voice regarding workers’ demands for a 15% wage increase in 2023. This is a matter for discussion by the Wage Council of each province (Dapeprov).

“For the demand for a minimum wage increase of 15%, please discuss it with the Provincial Wage Council. Can the formula in PP 52/2023 reach 15%,” said the Director General of Industrial Relations Development and Social Security for Workers at the Ministry of Manpower, Indah Anggoro Putri to CNBC Indonesia, Monday (11/13/2023).

The role of the Regional Wage Council is in the form of an additional role to provide advice and considerations to regional heads regarding the determination of minimum wages, as well as the structure and scale of wages in companies in their respective regions.

According to him, the latest regulation in Government Regulation (PP) Number 51/2023 is a revision of Government Regulation Number 36/2021 concerning Wages, which clearly shows the latest wage calculations.

Where the wage increase in 2024 is calculated based on three variables, namely inflation, economic growth and certain indices.

“The formula in PP 51/2023 is very clear, please calculate it and please also ask APINDO, can employers fulfill the wishes of the Labor Union?” Beautiful light.

What is certain, Indah said that this new regulation ensures that the minimum wage is adjusted every year.

“In fact, PP 51/2023 as the latest PP on Wages is a manifestation of the Government’s seriousness in ensuring an increase in minimum wages, encouraging people’s purchasing power, providing legal certainty for the business and industrial world, and preventing disparities or wage gaps between regions,” he explained.

Member of the 2023 – 2026 National Wage Council from business circles, Sarman Simanjorang, previously said that the business world welcomed the publication of the PP, which looked at national economic conditions and global economic threats. Apart from that, he said that the UMP request must be realistic considering several factors.

“The business world hopes that in setting the 2024 UMP/UMK they will really look at the national economic conditions and the global economic threat which is currently not good, so that requests for increases in the UMP must be realistic by paying attention to inflation, economic growth and certain indices or symbolized in “α form as stipulated in PP No. 51 of 2023,” said Sarman.

In determining a certain index for Economic Growth (PE) recommended by the Wages Council, it must reflect the economic and employment conditions in the area, so as not to cause turmoil in industrial relations which disrupts labor absorption.

“There are dynamics and differences of opinion regarding the issuance of PP No. 51 and in determining the 2024 UMP and UMK to prioritize dialogue, communication and deliberation to reach consensus, avoiding demonstrations and threats of strikes which create a less conducive investment climate,” said Sarman.

[Gambas:Video CNBC]

(emy/wur)