The government decides that next year’s minimum wage will not increase!

JAKARTA, KOMPAS.com – The Minister of Manpower Ida Fauziyah has issued a Circular (SE) addressed to the Governors of Indonesia. This Circular Letter Number M / 11 / HK.04 / 2020 regulates the Determination of the Minimum Wage 2021 during the Corona Virus Disease Pandemic of 2019 (Covid-19).

In this circular, the government has decided that the 2021 minimum wage will not increase, or is equivalent to this year’s minimum wage.

“Considering the condition of the Indonesian economy during the Covid-19 pandemic and the need for a national economic recovery, the governor is requested to make adjustments in the determination of the value of the Minimum Wage 2021 to the value of the Minimum Wage 2020,” said the circular , cited on Tuesday (10/27). 2020).

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This minimum wage determination circular was signed by the Minister of Manpower on October 26, 2020. Furthermore, the minimum wage for 2021 will be determined and officially announced by all local governments at the end of October 2020.

“Implement the determination of the minimum wage after 2021 in accordance with the provisions of the laws and regulations. Determine and announce the Provincial Minimum Wage for 2021 on October 31, 2020 ”, said the circular.

Previously, the Indonesian Confederation of Trade Unions of Workers (KSPI) demanded that the minimum wage be increased by 2021. As for the increase in the minimum wage, they demanded 8 percent.

KSPI threatens, if the minimum wage is not raised, labor demonstrations will increase, in addition to fighting for the rejection of the Omnibus Law of the Copyright Law.

KSPI president Said Iqbal said his party rejected the request among businessmen who said that next year there will be no increase in the minimum wage. It assessed that the negative economic growth during the Covid-19 pandemic was not justified.

According to Said Iqbal, if the minimum wage does not increase, the purchasing power of people will decrease. He said that the decrease in purchasing power will result in a drop in the level of consumption. In the end, it has a negative impact on the economy.

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