TEMPO.CO, Jakarta - Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Arsjad Rasjid in a written statement on Thursday implied that he will file for a judicial review on the Manpower Minister’s regulation No.18/2022 overseeing the minimum wage increase capped at 10 percent for 2023.

Rasjid believes this regulation clashes with Presidential Regulation No.36/2021 on wages, which is the regulatory implementation of the much-debated Job Creation Law. He argues that such a review is needed to maintain investment stability, workers’ welfare, and justice for businesses.

"To ensure that this policy is not counterproductive, KADIN together with the Employers' Association and every KADIN member corporation is forced to file for a review of the Minister of Manpower Regulation No 18/ 2022," Rasjid wrote on Thursday, November 24.

He said legal steps had to be taken as legal certainty is crucial for businesses. He claimed that business actors basically agree that the national economy affected by global economic recession needs to be handled carefully.

"One of them is by maintaining people's purchasing power, which is reflected in the increase in the minimum wage," he said.

Rasjid believes the minimum wage rule must consider the ability of businesses in responding to current economic conditions and prevent further burdening business actors and disrupting the business climate.

DEFARA DHANYA PARAMITHA (INTERN)

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