The minimum wage calculation would still refer to Government Regulation No. 51 of 2023 and take inflation rates, economic growth, and certain indexes as variables of consideration.
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has moved to deliberate on the 2025 regional minimum wage after his appointment as the interim manpower minister.

His appointment followed the election of the previous minister Ida Fauziyah as a legislator.

Secretary of the Economic Affairs Coordinating Ministry, Susiwijono Moegiarso, informed that Minister Hartarto summoned the secretary-general of the Manpower Ministry along with the ministry's director generals to delve into employment matters.

"The matters include the determination of minimum wages, which have been a recurring topic of discussion every October and November," he said in his office in Jakarta on Wednesday.

Moegiarso affirmed that the government is pursuing comprehensive preparations to ensure that next year's minimum wages do not trigger turmoil.

The government, he said, will have to consider various aspects, particularly the actual needs of workers, to identify the most accommodating decisions to be translated into policies.

"It is vital that we comply with regulations in tandem with picturing the real needs (of workers) to decide on an increase (in) rate," he added.

According to him, the minimum wage calculation would still refer to Government Regulation No. 51 of 2023 and take inflation rates, economic growth, and certain indexes as variables of consideration.

He said that Minister Hartarto will convey the results of the calculation to governors, noting that the increased rate will be determined by regional wage councils.

"In fact, the government favors boosting the purchasing power of middle-class workers since the economic growth stems from their purchasing power," he added.

Furthermore, the secretary said that the government will pay close attention to the economic growth rate in the third quarter of 2024 in its deliberations on the 2025 minimum wage.

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Translator: Imamatul S, Tegar Nurfitra
Editor: Arie Novarina
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