Jakarta Businesses Request Wage Increase to Not Exceed 5 Percent

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Kamis, 1 Januari 1970 07:00 WIB

Wage Increase to be exceeding Inflation

TEMPO.CO, Jakarta - Deputy of Jakarta`s Chamber of Commerce (Kadin) Sarman Simanjorang asked the Jakarta administration to limit the city`s minimum wage (UMP) increase in 2019 to not exceed 5 percent.

His request is a direct response to Jakarta’s decision to increase the 2019 UMP up to 8.03 percent that concurs with Government Regulation (PP) No. 78/2015. This decision could potentially be a burden for the business industry based in Jakarta.

Read: Jakarta Businesses Unhappy with 8.03 percent Minimum Wage Raise

Sarman said that if current economic conditions -mainly the rupiah exchange rate- improves, then it would certainly not be a burden. However, he argues that the economic pressure the industry faces today will overwhelm the company’s operational costs.

“That is why businessmen request that the UMP DKI 2019 would be under 8.03 percent or at the range of 4.5 to 5 percent,” said Sarman on Tuesday, October 23.

Jakarta Governor Anies Baswedan is set to announce Jakarta’s 2019 UMP on November 1st which is based on the recommendation of Jakarta’s wage council.

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