Sultan raises UMP DIY, why are workers disappointed?

The Confederation of All Workers’ Trade Unions of Indonesia (KSPSI) in the Yogyakarta Special Region (DIY) assesses that the increase in the provincial minimum wage (UMP) in 2021 has disappointed workers. This is because an increase in the PSU of 3.54% has the potential to increase the poverty rate.

DPD (KSPSI) DIY Secretary General Irsyad Ade Irawan said the 2021 stipulation of the UMP by Yogyakarta Governor Sri Sultan Hamengkubuwono X did not meet workers’ expectations. In fact, workers were disappointed with the PSU increase which was only 3.54%.

“All workers in Yogyakarta are deeply disappointed and heartbroken by the governor’s decision to increase the minimum wage by only 3.54 percent,” he said in a written statement to reporters on Saturday (10/31/2020).

Also, the DIY governor’s decision regarding the 2021 UMP increase is no better than that of the DIY Provincial Wage Council which recommended a 4% increase in the minimum wage.

Irsyad also explained the amount of UMP that should be applied in DIY. Where the city of Yogyakarta is IDR 3,356,521, Sleman Regency IDR 3,268,287, Bantul Regency IDR 3,092,281, Kulon Progo Regency IDR 3,020,127 and Gunungkidul Regency IDR 2,807,843.

“The cheap wages that are set year after year have the potential to preserve poverty and inequality in Yogyakarta,” he said.

“So he was impressed that the Governor of Yogyakarta, as if he wanted to dissipate his own hopes of reducing the poor and inequality, as expressed in his speech on the Governor’s vision and mission of DIY 2017-2020,” continued Irsyad.

This is because the UMP, which never increases significantly from year to year, has the potential to make DIY workers unable to buy land and houses. Where land prices continue to rise, workers must live on low wages even with good productivity.

“Especially amid a threat of recession, the 2021 low wage policy has the potential to reduce people’s purchasing power. In fact, increasing purchasing power is very important to improving the economy during a recession,” he said.

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