Jakarta Provincial Minimum Wage Increase to IDR 4.6 Million
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18 December 2021 20:56 WIB
TEMPO.CO, Jakarta - Jakarta Governor Anies Baswedan asserted that the 5.5 percent increase of the provincial minimum wage of Jakarta for 2022 can be complied by businesses. According to Anies, the decision to increase the minimum wage honors the principle of justice for workers, businesses, and the Jakarta government.
"We asserted that the 5.1 percent increase is appropriate for workers and affordable by businesses,"Anies said in a written statement on Saturday, December 18, 2021.
Anies raised the Jakarta provincial minimum wage for 2022 by IDR 225,667, or equals to 5.1 percent higher compared to the IDR 4,416,186.548. For 2022, the Jakarta provincial minimum wage is set at IDR 4,641,854.
Previously, the increase was only set at IDR 37,749. The extremely low increase received strong protest from workers and workers later demanded Anies to revoke the decision. Anies later issued letter No. 533/-085.15 on Suggestion for the Review of Provincial Minimum Wage Stermination Formula for 2022, which was addressed to Ministry of Manpower Ida Fauziyah.
Anies mentioned that the increase of Jakarta's minimum provincial wage in the past six years was 8.6 percent on average. Anies considered the 5.1 percent increase as an appreciation to workers.
"This is a form of appreciation for workers and also the spirit for the economy and business world," Anies said.
The consideration to apply a 5.1 percent increase was based on studies conducted by Bank Indonesia ("BI")
BI projected that the growth rate of the Indonesian economy will reach 4.7 to 5.5 percent next year. Inflation rate is also predicted to remain under control at 3 percent.
The Jakarta government later studied, discussed, and made a review on the Jakarta minimum provincial wage for 2022, which was previously set to increase by some IDR 37,000. It was later revealed that the 2022 minimum provincial wage for Jakarta was calculated based on two variables.
The first variable was the 1.6 inflation rate and the second variable was the national economy growth rate of 3.51 percent. "From both variables, comes 5.11 percent as the increase of provincial minimum wage for 2022," Anies explained.
LANI DIANA WIJAYA
