Governors Raise 2021 Minimum Wage, Employers Association Disappointed

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Markus Wisnu Murti

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  • TEMPO.CO, Jakarta - The Indonesian Employers Association (Apindo) chairperson, Hariyadi Sukamdani, on Monday expressed his disappointment over the decisions to raise the 2021 provincial minimum wages (UMP) made by a number of governors. 

    “We regret [their decisions],” said the Apindo chairperson in a press conference on Monday, November 2. 

    He believed their insistence to raise next year’s UMP went against the Manpower Ministry’s official circular (SE). 

    The regional leaders disregarded the central government’s call included Jakarta Governor Anies Baswedan, who decided on Saturday to implement an asymmetric policy requiring businesses not affected by the pandemic to raise their minimum wage above Rp4,416,186. 

    The other leaders are Central Java Governor Ganjar Pranowo, East Java Governor Khofifah Indar Parawansa, Yogyakarta Governor Hamengkubuwono X, and South Sulawesi Governor HM Nurdin Abdullah, who all have decided not to adhere to the Manpower Ministry’s circular. 

    The Apindo chair maintained that the governors should have referred to the Government Regulation No.78/2015 on remuneration that heavily depended on evaluation of the necessities to live a decent life. “Instead of taking their own baseless discretion,” said Hariyadi. 

    Read: Jakarta Minimum Wage Raised on Conditions, Businesses Ask for Detailed Rules

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