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Jakarta, CNBC Indonesia – The workers immediately responded to the Circular from the Minister of Manpower that said there would be no increase in the minimum wage in 2021.
The president of the Indonesian Trade Union Confederation (KSPI), Said Iqbal, regretted the decision. He said that the workers’ resistance action would be even stronger in the face of the rejection of the absence of an increase in the 2021 minimum wage and the rejection of the omnibus law of the Employment Creation Law.
“Menaker has no sensitivity for the fate of workers, he only looks at the interests of employers,” he said on Tuesday (10/27).
According to him, entrepreneurs are in trouble. But labor is also much more difficult. The government should be able to act more fairly, that is, there will still be an increase in the minimum wage in 2021.
However, companies that cannot afford it can carry out a suspension if they do not increase the minimum wage after negotiating with the workers’ union at company level and reporting it to the Ministry of Manpower.
“Don’t be defeated by all the poor companies. In fact, in 1998 there was an increase in the minimum wage to maintain people’s purchasing power, ”he said.
According to him, there are 4 reasons why you should increase the 2021 minimum wage. First, if the minimum wage does not increase, the situation will get even worse. 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 2021 continues to rise. So that the actions are even greater.
Second, 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 Said Iqbal.
Third, if the minimum wage does not increase, people’s purchasing power will decrease. The decrease in purchasing power will cause a drop in the level of consumption. In the end, it has a negative impact on the economy.
Fourth, not all businesses are struggling due to the COVID-19 pandemic. Therefore, he requested that the salary increase policy be carried out in a proportional manner.
Therefore, the KSPI and all the unions in Indonesia will carry out massive national actions in 24 provinces on November 2 and November 9-10, which will be attended by tens and even hundreds of thousands of workers in the Constitutional Court, Palacio, DPR RI and at the Governor’s office. across Indonesia with the issue of cancellation of the general law of the Employment Creation Law and there should be an increase in the minimum wage in 2021 to maintain people’s purchasing power.
The Minister of Manpower Ida Fauziyah signed a decision on the absence of an increase in the minimum wage in 2021 on October 26, 2020. Namely, through Circular of the Minister of Manpower of the Republic of Indonesia Number M / 11 / Hr .04 / X / 2020 on the Determination of the Minimum Wage of 2021 during the Corona Pandemic Viral Disease 2019 (COVID-19).
“Determination of the 2021 minimum wage, taking into account 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 determining the value of the 2021 minimum wage at the value of the 2020 minimum wage, “wrote Menaker Ida Fauziyah.
[Gambas:Video CNBC](dru)
