Jakarta Suggested to Raise Minimum Wage Based on Inflation Forecast



Laila Afifa

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  • TEMPO.CO, JakartaJakarta Provincial Government will today announce a policy on the increase in the 2022 provincial minimum wage or UMP in the capital city. 

    Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira suggested the city government increase the UMP according to the 2022 inflation projection of 3-4 percent.

    Bhima argued that this is as mandated in the Government Regulation (PP) Number 78 of 2015, which states that wage hikes be determined from economic growth and inflation.

    “It (the hike) is 2.48 percent and if possible, raise it higher based on the inflation forecast in 2022, at more than 4 percent,” said Bhima as quoted from Antara in Jakarta, Thursday, November 18.

    The Manpower Minister Ida Fauziyah previously announced that the average minimum wage increase will be 1.09 percent. “This is the national average. Let’s just wait for the governors’ decision,” she said in an official statement last Tuesday.

    Meanwhile, Jakarta Governor Anies Baswedan said before workers that the decision is in the hands of the central government. The local government, he added, will help ease the cost of living in the capital through several programs.

    Anies Baswedan met about 100 workers who packed in front of the City Hall yesterday. They took to the streets demanding an increase in the next year’s UMP by 3.57 percent.

    Read: Workers Oppose 1.09-percent Hike in 2022 Minimum Wage