Apindo Files Judicial Review of 2023 Minimum Wage Policy

24 November 2022 17:27 WIB

TEMPO.CO, JakartaThe Indonesian Employers' Association (Apindo) planned to file a petition for judicial review with the Supreme Court against the Manpower Minister's Regulation No. 18 of 2022 which stipulates an increase in 2023 the provincial minimum wage or UMP up to 10 percent.

Apindo has appointed Denny Indrayana, who previously served as deputy minister of Law and Human Rights in the era of President Susilo Bambang Yudhoyono, as the team leader.

Hariyadi Sukamdani, the Apindo chairperson, explained that the petition will be submitted in the near future because employers believe that the salary hike must be based on careful and comprehensive calculations.

Amid the threat of a global economic recession that is coming sooner than currently expected, he argued, legal protection for a secure business climate and a sense of justice needs to be upheld so that business actors can survive to keep providing added value from the economic chain.

“The spirit that business players want to put forward is to maintain investment stability, workers’ welfare, and justice for employers,” said Hariyadi to Tempo on Thursday, November 24, 2022.

Arsjad Rasjid, the chairperson of the Indonesian Chamber of Commerce and Industry (Kadin), seconded the Apindo head’s statement. He said business actors agree that dynamic economic conditions in the country due to the global economic recession in the wake of geopolitical conflicts must be addressed thoughtfully. 

According to him, it is necessary so that the increase in the minimum wage will not burden business actors and disrupt the business climate.

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