Jokowi calls the minimum wage still in the job creation law, this is the fact

JAKARTA, KOMPAS.com – President Joko Widodo mentioned a lot of misinformation and jokes that caused the Creation Labor Law to be rejected by the public.

“I take an example of information that says the elimination of the Provincial Minimum Wage, Regency Minimum Wage and Provincial Sectorial Minimum Wage, this is not true,” Jokowi said in a press release from the Presidential Palace, Bogor, on Friday (10 / 09/2020)

“Because in fact the Regional Minimum Wage (UMR) still exists,” he said.

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What are the facts?

When comparing the Employment Creation Law with Law Number 13 of 2003 on Labor, there are a number of rules that have changed regarding the minimum wage.

One of them is the elimination of article 89, paragraph 1, letter b), which regulates sectoral minimum wages. This deletion is listed in chapter IV of employment, point 26.

The president of the Indonesian Trade Union Confederation, Said Iqbal, assessed that the elimination of this sectoral minimum wage is a form of injustice.

This is because the business sector with high income for the state will pay wages to workers based on the regional minimum wage.

“In the mining sector like Freeport, Nickel in Morowali and others, the value of the minimum wage is the same as that of a garment company or cracker. For this reason, all over the world there is a Minimum Sector Salary that is applied according to the added value contribution of each industry to the country’s PDP ”. Said Iqbal said.

So, the provisions of the Provincial Minimum Wage (UMP) and the Regency / City Minimum Wage (UMK) have not disappeared, but have changed.

Also read: Jokowi denies the job creation law that facilitates layoffs, what are the facts?

In paragraph 1 of article 89 of the Labor Law, it is established that the minimum wage consists of the minimum wage based on the province or district / city.

The article was removed in the Copyright Act. Instead, there is an article with the addition of article 88 C that says:

(1) The governor is obliged to determine the provincial minimum wage.

(2) The governor may determine the district / city minimum wage under certain conditions.

(3) The minimum wage mentioned in paragraph (1) and paragraph (2) will be determined based on economic and working conditions.

(4) Certain conditions mentioned in paragraph (2) include regional economic growth and inflation in the regency / city in question.

(5) The district / city minimum wage mentioned in paragraph (2) must be higher than the provincial minimum wage.

(6) The economic and labor conditions referred to in section (3) will use data from the authorized institution in the field of statistics.

(7) The additional provisions relative to the procedure to determine the minimum wage referred to in paragraph (3) and certain conditions referred to in paragraph (4) shall be regulated by the Government Regulations.

Also read: Jokowi denies that the minimum wage is calculated by the hour in the Employment Creation Law, what are the facts?

Workers highlight the sound of the rules saying that MSEs are conditional and will be further regulated by government regulations.

“For KSPI, this is just an alibi for the government to eliminate UMK in the regions that have been in force, because the authority for that is from the government. While in Law 13 of 2003, UMK is determined immediately without conditions,” he said Said Iqbal.

Later, Said Iqbal also highlighted the UMK that it is no longer required to be determined by the Governor. The governor is only obligated to determine the UMP.

“This further confirms our concern that UMK will be phased out, because it is no longer an obligation to stipulate,” he said.

Meanwhile, what the workers want is for the UMSK to continue to exist and the UMK is stipulated in accordance with Law 13 of 2013 without conditions, referring to the need for a dignified life (KHL).