For employers, remember that this wage increase is the first in the past three years and has not occurred in the past two years; it is about time to give them a raise
Jakarta (ANTARA) - The increase in the 2023 minimum wage is a form of appreciation for workers who have struggled and shown high resilience, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said.



"For employers, remember that this wage increase is the first in the past three years and has not occurred in the past two years; it is about time to give them a raise," Hartarto said at the “2022 Kompas100 CEO Forum” here on Friday.



Therefore, he asked employers to compensate for the wage increase through increased productivity and efficiency.


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The minister said that rules regarding the 2023 minimum wage increase have been issued, which will be adjusted to the purchasing power or consumption of each region.



They specify an increase in the minimum wage in the range of 6 percent to 10 percent, he informed. During monitoring, it has been observed that on average, regions have increased the minimum wage by 8 percent, or the midpoint of that range.



Earlier, the Ministry of Manpower issued the Minister of Manpower Regulation Number 18 of 2022 concerning the determination of the minimum wage for 2023, which stipulates that the adjustment in the value of the minimum wage may not exceed 10 percent.


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Several provisions in the regulation emphasize that the adjustment to the value of the minimum wage for 2023 will be calculated based on a formula that considers the variables of economic growth, inflation, and certain indexes. Provincial and district/city minimum wages that have been set will come into effect on January 1, 2023.



Minister of Manpower, Ida Fauziyah, asked all regional heads to determine the 2023 minimum wage in accordance with Minister of Manpower's Regulation Number 18 of 2022, with adjustments to the formula, which is expected to help maintain people's purchasing power.



"By adjusting the 2023 minimum wage formula, I hope that people's purchasing power and consumption will be maintained and is able to increase economic growth which will eventually create more job opportunities," she added.



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Translator: Agatha Olivia V, Resinta S
Editor: Fardah Assegaf
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