"It is already certain that the increase in Jakarta's UMP in 2023 is 5.6 percent," Head of the Jakarta Manpower, Transmigration, and Energy Office Andri Yansah stated at the Jakarta City Hall on Monday.
According to Yansah, the increase in the 2023 UMP was determined after observing the proposal of the Wage Council on Tuesday (November 22). The council's session involved members of the Jakarta Indonesian Employers Association (Apindo) and the Jakarta Chamber of Commerce and Industry (Kadin).
During the discussion, the Jakarta Kadin proposed a 5.11-percent increase, or using the alpha 0.1 calculation, for the 2023 UMP, while Jakarta Apindo suggested the increase using the formula of Government Regulation No. 36 of 2021 concerning Wages.
Meanwhile, at the session, the Jakarta provincial government's representatives or unit included experts, academicians, practitioners, and Statistics Indonesia (BPS).
"This unit conducted a study and survey where they find (an increase of) 5.6 percent or alpha 0.2," he remarked.
Yansah explained that the amount of the 2023 UMP is based on Ministerial Regulation No. 18 of 2022 concerning the 2023 UMP determination.
He is optimistic that the provincial minimum wage increase would be accepted by the employers' association, after earlier, the Jakarta State Administrative Court (PTUN) overturned Gubernatorial Decree No. 1517 of 2021 on the 2022 Provincial Minimum Wage.
"Insya Allah (God willing), employers will accept the figure of a 5.6-percent increase," he added.
Currently, the provincial government is finalizing the Governor's Decree on the 2023 UMP that will be signed by Acting Governor Heru Budi Hartono.
Meanwhile, the Jakarta Chamber of Commerce and Industry stated that employers are reviewing options to withhold the rise in 2023 UMP if employers are not able to implement the increase.
The Employers' association had proposed the 2023 UMP to be at Rp4.7 million (US$299).
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Translator: Dewa W, Kenzu
Editor: Sri Haryati
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