Jakarta Provincial Government Announces 2023 Minimum Wage

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Laila Afifa

28 November 2022 22:45 WIB

TEMPO.CO, Jakarta - Head of Jakarta Manpower, Transmigration, and Energy Agency Andri Yansyah, announced the 2023 Jakarta Provincial Minimum Wage (UMP) of Rp 4,901,798.

"[God willing], it is certain that the Jakarta Provincial Government will increase the UMP by 5.6 percent," Andri told reporters at the Jakarta City Hall after attending a Leadership Meeting with Acting Governor Heru Budi Hartono on Monday, November 28, 2022.

Under the ministerial regulation by the Manpower Ministry (Permenaker) Number 18 of 2022 concerning the determination of the UMP, Andri said, the Governor is obliged to announce the determination of the 2023 UMP on Monday, November 28, 2022.

"I need to declare that under Permennaker Number 18 of 2022 concerning the UMP, the head of the region, in this case, the Governor, is required to announce the determination of the 2023 UMP on November 28, 2022," Andri said.

Although the declaration has been made, the Manpower Office is still finalizing the matter of the 2023 Jakarta UMP.

"I also need to declare that now we are still finalizing the issue of determining the 2023 UMP. Hopefully, there will be no changes," he said.

The establishment of the Jakarta 2023 UMP to increase by 5.6 percent is under the Provincial Government's proposal which was submitted at the Wage Council Meeting on November 22.

"Under Permenaker Number 18 of 2022 using Alpha 0.2, the Provincial Government's UMP for 2023 is Rp 4,901,798," he continued.

In the meeting of the wage council, he said, there were four proposals for increasing labour wages. First, a proposal from employers consisting of two elements, namely from the Chamber of Commerce and Industry (Kadin) and the Indonesian Employer's Association (Apindo).

"Kadin proposes 5.11 percent or using Alpha 0.1 while Apindo proposes using Government regulations (PP) 36 of 2021," he said.

The Jakarta provincial government at the Wage Council Session proposed 5.6 percent or Alpha 0.2. Meanwhile, the Workers' Union proposed an increase in the 2023 UMP of 10.55 percent. "The Provincial Government of Jakarta at the Wage Council Session, there is a team of experts such as academics, and practitioners including the Central Bureau of Statistics. They are the ones who carry out the studies and surveys which give the result to the 5.6 percent or 0.2 alpha," Andri said.

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