The minimum wage does not increase, so companies do not lay off employees

JAKARTA, KOMPAS.com – Finance Minister Sri Mulyani Indrawati stated that the government’s decision not to raise the minimum wage next year is a counterweight to various policies that have been issued by the government to boost people’s purchasing power this year.

The State Treasurer explained that the government has used fiscal instruments to provide various social assistance programs to the community.

On the other hand, the government is also helping companies survive or recover from the pressure caused by the corona virus (Covid-19) pandemic.

Also read: This is the reason why the Minister of Manpower decides that the 2021 minimum wage does not increase

“However, the public or the workers are still cautious in terms of purchasing power, that’s a fiscal role. That’s acting as a bridge there, so that it doesn’t make a policy (policies) weaken the company,” Sri said. Mulyani giving a press release from the Stability Committee. Virtual Financial System (KSSK), Tuesday (10/27/2020).

“Or in this case, workers can be fired,” he said.

The State Treasurer explained that to compensate for the purchasing power of the population that eroded in the middle of the pandemic, the government has launched a social assistance program with a total budget of Rs 240 trillion.

Some of these programs include the additional Family Hope Program (PKH), increased basic food assistance, Jabodetabek and non-Jabodetabek social assistance, and pre-employment cards.

Plus, discounts on electricity rates, as well as Direct Village Cash Assistance (BLT). The government has also recently launched a salary subsidy assistance program with a budget of up to Rs 30 trillion, as well as assistance with internet fees to help teach teaching and learning activities for teachers and students.

“This is to override so that the purchasing power of the community continues to emerge without burdening the stressed business sector,” he said.

Also read: The government decides that next year’s minimum wage will not increase

The government has decided not to raise the minimum wage next year. Difficult economic and corporate conditions due to the corona pandemic are considered the main reasons for this.

This provision is contained in the Circular (SE) of the Minister of Manpower of the Republic of Indonesia Number 11 / HK04 / X / 2020 regarding the Determination of the Minimum Wage in 2021 during the Covid-19 Pandemic.

With the issuance of this circular, the government has decided that the 2021 minimum wage will not increase or equal the minimum wage this year.

The Confederation of Indonesian Workers’ Unions (KSPI) also regretted the attitude of the Minister of Manpower who issued a circular on the determination of the 2021 minimum wage.

With the issuance of this circular, said KSPI President Said Iqbal, the workers will protest against the rejection of the 2021 minimum wage increase and the rejection of the Omnibus Law of the Copyright Law.