Jakarta Minimum Wage Raised on Conditions; Businesses Ask for Detailed Rule

TEMPO.CO, Jakarta - The Indonesian Domestic Entrepreneurs Association (HIPPI) chairman Sarman Simanjorang asked Governor Anies Baswedan to set detailed rules on the 2021 minimum wage, particularly in regards to business sectors impacted by the Covid-19 pandemic.

The request was made after Anies issued an asymmetric policy on the 2021 provincial minimum pay.

“So we don’t have to submit an application letter to the Manpower Agency and the city administration,” said Sarman, who is a former member of the city Wage Council, in an official statement in Jakarta, Monday, November 2, 2020.

On Saturday, October 31, 2020, Anies announced that Jakarta's minimum wage in 2021 was increased to Rp4,416,186,548 or by 3.27 percent for workers in businesses not affected by the ongoing pandemic. This was in compliance to the Circular of the Manpower Minister and Government Regulations on Wages.

Anies claimed the policy aimed to enforce justice for both employers and workers during the Covid-19 pandemic. Previously, the Jakarta minimum wage in 2020 was raised to Rp4,276,349 or by 8.51 percent from 2019.

The affected companies, the governor added, could refer to the 2020 UMP by submitting an application to the city Manpower Agency. To ensure the welfare of workers, Jakarta prepared a Workers' Card program.

Sarman further asked the Manpower Agency to oversee the minimum wage policy in order to anticipate different perceptions among workers. However, he supported Anies Baswedan's policy which was considered fair.

Also Read: Jakarta Follows Ministry's Request; No Minimum Wage Hike for 2021

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