Jakarta Minimum Wage Increase is for the Good of the Community: Deputy Governor
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19 December 2021 20:55 WIB
TEMPO.CO, Jakarta - Deputy Governor of Jakarta Ahmad Riza Patria said the decision to raise Jakarta's 2022 provincial minimum wage (UMP) is for the benefit of the community, especially workers.
"The priority is certainly the people's interest. Hopefully, everyone can understand it," Patria said on Sunday.
According to him, the decision to increase the minimum wage for next year was taken after going through several considerations, one of which was the impact of the COVID-19 pandemic on workers.
With the raise of UMP, Patria added, the workers' financial burden during the pandemic can be lessened. Nevertheless, he said he is aware that the decision would not satisfy everyone.
"There is no interest that is 100 percent satisfactory, but it is for common good," he explained.
Related news: Governor Baswedan increases Jakarta's minimum wage up to 5.1 percent
Previously, Jakarta Governor Anies Baswedan has announced the decision to increase Jakarta's UMP next year by 5.1 percent to Rp4,641,854 from 0.85 percent to Rp4,453,935 as decided earlier.
"What is important in this UMP increase is we hope people's and workers' purchasing power will not decline," Baswedan said on Saturday, Dec 18.
Thus, the increase in 2022's UMP is Rp225,667 or higher than the previous amount of Rp37,749.
The governor explained, the revision was based on Bank Indonesia's review that projected Indonesia's economic growth in 2022 will reach within the range of 4.7 to 5.5 percent. Moreover, inflation could be kept under control at three percent or in the range of two to four percent.
The Institute for Development of Economics and Finance (INDEF) also predicted Indonesia's economic growth next year to reach 4.3 percent.
Therefore, Baswedan explained, the decision to revise the UMP increase had been discussed with stakeholders and with caution as the economic wheels in Jakarta have started to spin again.
"With an increase of Rp225,000 per month, our workers can use it as an additional (income) for daily needs," he added.
Read: Jakarta Provincial Minimum Wage Increase to IDR 4.6 Million
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