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Jakarta, CNBC Indonesia – The Governor of Central Java, Ganjar Pranowo, has decided to increase the Central Java Provincial Minimum Wage (UMP) in 2021 by 3.27% to IDR 1,798,979.12.
Ganjar’s decision is different from the Circular of the Minister of Manpower which decides that there will be no increase in the PMU of 2021. A total of 18 provinces are said to have approved the implementation of this Circular of the Minister of Manpower, including Java West, Banten, Bali, Aceh, Riau Islands, Lampung, East Kalimantan, Papua, and others.
This means that the 18 provinces also decided not to raise the PMU 2021.
However, out of the list of 18 provinces that have agreed not to increase the UMP next year, there is no Jakarta DKI province. This means that it is not yet clear whether Governor Anies Baswedan will follow the decision or take a different step like Ganjar Pranowo.
The union is reported to go on a national strike if it does not reach an agreement on the minimum wage next year. This was transmitted by the president of the Confederation of Indonesian Workers’ Unions (KSPI), Said Iqbal.
According to him, this is in line with Law No. 13 of 2003 on Manpower, because there is no agreement.
It also considered SE Menaker unconstitutional.
“It is not threatening, it could eventually make a decision on a national strike. This is stronger than the national strike that the unions carried out on October 6-8. Why a national strike? Because the national strike will be used by co-workers at the factory level who will then propose this at the national level, for example the KSPI and KSPSI (Confederation of All Indonesian Workers ‘Unions), other confederations of unions, which can be proposed by the Workers’ Union at the level factory, “he explained in a virtual press conference on Friday (10/30/2020).
Labor circles reminded the Manpower Minister to immediately withdraw the SE because it has the potential to cause instability. Also with the governors of not responding to the request of the Minister of Labor in the stipulated SE.
When he found out that Ganjar Pranowo had raised the 2021 UMP for Central Java, Said Iqbal also supported the decision of the Governor of Central Java.
“So the governor of Central Java was right in not following the circular letter that was an appeal,” he said.
According to Said, the legal regulations do not know the circulars. He said that the minimum wage reference is the Employment Creation Law.
“The Employment Creation Law is not yet in force, the number is not yet valid, on November 7 it will only go into effect,” said Said Iqbal.
Therefore, the current salary increase is based on two main legal bases, namely Law Number 13 of 2003 and Government Regulation Number 78 of 2015.
Ganjar said the increase in Central Java’s UMP in 2021 was 56,963.9 IDR, bringing the total to 1,798,979.12 IDR. Ganjar also explained that the basis for determining the UMP is PP 78 of 2015 regarding salaries. In this calculation, the increase in the PSU uses the calculation of inflation and economic growth.
[Gambas:Video CNBC](wia)
