Salaries for 2021 not increasing, KSPI compares to President Habibie era

JAKARTA, KOMPAS.com – The president of the Confederation of Indonesian Workers’ Unions (KSPI), Said Iqbal, assessed that the government is less sensitive to the fate of workers after deciding not to increase wages next year.

Understand that many entrepreneurs have also been affected by the pandemic. However, workers are considered to face more difficult conditions than employers. Therefore, according to Said, the government should have acted more fairly.

“Don’t be defeated by all the poor companies,” Said said in a written statement on Tuesday (10/27/2020).

Also read: 2021 minimum wage does not increase due to pandemics, workforce – reverse logic!

He also compared the attitude of the current government with the attitude of the government in the era of leadership of the third President of the Republic of Indonesia, BJ Habibie. At the time, although Indonesia’s economic conditions were affected by the crisis, the government would continue to raise labor wages next year.

“The point is that in 1998 there was still an increase in the minimum wage to maintain people’s purchasing power,” he said.

For example, at that time the minimum wage in DKI Jakarta increased by around 16 percent from 1998 to 1999. Meanwhile, at the same time, economic growth was minus 17.49 percent.

“In the same way with the minimum wage from 1999 to 2000, the minimum wage still increased around 23.8 percent, while economic growth in 1999 was minus 0.29 percent,” he said.

Also read: The central government does not increase the minimum wage 2021, the reward mention will not be rushed

Therefore, he considers that the government’s reason for not increasing labor wages due to negative economic growth is not correct.

On the other hand, you are concerned that if labor wages do not increase, people’s purchasing power will actually decrease. This condition can negatively affect the level of consumption, so it could have a negative impact on the national economy.

In addition, he added, not all companies are experiencing difficulties due to the pandemic. Therefore, he requested that the salary increase policy be carried out in a proportional manner.

Previously reported, Labor Minister Ida Fauziyah confirmed that there would be no increase in the minimum wage next year, both the provincial minimum wage (UMP) and the regency / city minimum wage (UMK).

This is indicated in Circular Letter Number M / 11 / HK.04 / X / 2020 regarding the Determination of the Minimum Wage in 2021 during the Corona Virus Disease Pandemic 2019 (Covid-19).

The reason the government will not raise the minimum wage next year is that the Indonesian economy is currently in a recovery period. According to the government, rising wages in 2021 will indeed be a burden on the business world.