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Jakarta, CNBC Indonesia – The president of the Confederation of Indonesian Workers’ Unions (KSPI), Said Iqbal, evaluated that the measure of the Governor of Central Java, Ganjar Pranowo, to increase the provincial minimum wage (UMP) in 2021 was correct. Said told the assessment to CNBC Indonesia in Jakarta on Friday (10/30/2020).
“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 increased Central Java’s 2021 UMP by 3.27% to Rp1,798,979.12. Is that increase sufficient?
Said Iqbal then used an analogy in the period 1998-1999. At that time, there was an economic recession with the economy at minus 17.56% and inflation at 78%. That means the price of the goods has doubled. However, the government increased wages by up to 16%.
“Now, 3-quarters equals minus 8%. Deeper in recession, it depends on political and economic policies. Therefore, the Central Java governor’s policy is a political economy policy and is legitimate. Rather than causing riots, resistance, mass action, it will hurt everyone. parties, “said Said Iqbal.
In addition, he said that all this could not be separated from the attitude of the Minister of Human Resources Ida Fauziyah, who did not listen to the unions. Said Iqbal admitted that he received a report from the union in the National Salary Council if there was no agreement.
“And I have read the results of the minutes of the Indonesian-wide wage councils forum. There is no agreement. The views of the parties are that there is no increase in Apindo’s opinion. That means listening to Apindo,” Said Iqbal said.
So the governor of Ganjar, taking into account the political conditions in Central Java and the economy, is getting worse with the increase in wages, the purchasing power is getting worse. The investment is ruined, the public spending of the APBN, APBD is bleeding. Exports are not happy either. there the governor makes a policy ”, he continued.
[Gambas:Video CNBC](Friends / dob)
