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Jakarta, CNBC Indonesia – Workers continue to demand that the 2021 minimum wage be increased and firmly reject requests from employers asking that there be no minimum wage increase next year. The reason that wages are not increasing is because currently less economic growth is not correct. Compare this to what happened in 1998, 1999, and 2000.
“For example, in DKI Jakarta, the minimum wage increase from 1998 to 1999 continued to increase by about 16 percent, while economic growth in 1998 was minus 17.49 percent. Similarly, with the minimum wage from 1999 to 2000, the minimum wage continued to increase by around 23.8 percent, while economic growth in 1999 was minus 0.29 percent, “said the president of the Confederation of Indonesian Trade Unions (KSPI ), Said Iqbal to CNBC Indonesia, on Saturday (10/17).
Therefore, the ideal salary increase is 8%. This is based on the increase in average wages over the last 3 years. If the minimum wage does not increase, Said Iqbal said, this will make the situation even hotter.
Especially at this time the workers continue to fight for the rejection of the Employment Creation Law. Where together with the rejection of the omnibus law, workers will also speak out so that the minimum wage of 2021 continues to rise. So that the actions are even greater.
“So there is no reason why the minimum wage from 2020 to 2021 should not increase because the economic growth is negative. When Indonesia experienced the 1998 crisis, where the economic growth was down around 17%, but the minimum wage in DKI Jakarta at that time continued to rise, even reaching 16%. “He said.
If the minimum wage does not increase, the purchasing power of people will decrease. The decrease in purchasing power will cause a drop in the level of consumption that will also decrease. In the end, it has a negative impact on the economy.
He also recalled that not all companies are in trouble due to the COVID-19 pandemic. Therefore, he requested that the salary increase policy be carried out in a proportional manner.
In other words, companies that can still do so must raise the minimum wage. Then, for companies that cannot afford it, the law offers a way out by postponing the minimum wage.
(drums / drums)
