The List of 2023 Minimum Wage Hike for 6 Provinces in Java

TEMPO.CO, Jakarta - The Provincial Governments have announced the 2023 minimum wage hike in each of their regions. According to the ministerial Regulation of the Manpower Ministry (Permenaker), Number 18 of 2022 concerning the 2023 Minimum Wage, the increases in wages are limited to a maximum of 10 percent.

In six provinces on the island of Java, the Provincial Minimum Wage increases ranged from 5 to 8 percent. Jakarta has the lowest percentage of increased wages.

Head of Jakarta Manpower, Transmigration and Energy Agency Andri Yansyah, announced the 2023 Jakarta minimum wage to Rp4,901,798 or a 5.6 percent increase. Nevertheless, based on nominal, the 2023 Jakarta Minimum Wage is the highest among other provinces.

In Banten, the Minimum Wage in the region is slightly increased to 6.4 percent or Rp160,076.89. Thus Banten's minimum wage, which previously was Rp2,501,203.11 increased to Rp2,661,280. The establishment of the wage was regulated under the Decree of the Governor of Banten Number 561/Kep.305-Huk/2022 concerning the region's Determination on Provincial Minimum Wage for 2023, dated November 28 2022.

Furthermore, the increase in minimum wages in Yogyakarta reached 7.65 percent or Rp140,866.47. Starting next year, the Yogyakarta minimum wage will be Rp1,981,782 from the previous Rp1,840,915.53.

Acting Assistant Secretary of Yogyakarta for Government and General Administration Beny Suharsono said that the increase in the Provincial Minimum Wage had been decided by Yogyakarta Governor Sultan HB X based on the recommendation of the Provincial Wage Council. The recommendations include elements from workers' unions, employers, government, as well as data from the Central Statistics Agency (BPS) on economic growth and the inflation rate.

Meanwhile, minimum wages for East Java are slightly increased more than in Yogyakarta, which is 7.86 percent. This means that the minimum wage for East Java increased from Rp1,891,567.12 to Rp2,040,244. The minimum wage was determined based on East Java Governor's Decree (SK) Number 188/860/KPTS/013/2022 which was signed by Governor Khofifah Indar Parawansa on November 21, 2022.

West Java stood in second place with the highest 2023 Provincial Minimum Wage increase in Java. The minimum wage in West Java increased by 7.88 percent. From the previous Rp1,986,670.17, West Java minimum wage starting next year will increase to Rp1,986,670.17. According to West Java Regional Secretary Setiawan Wangsaatmaja, Governor Ridwan Kamil has examined the Wage Council's recommendations and compliance with applicable regulations.

The highest percentage increase in wages on the island of Java was the Provincial Minimum Wage in Central Java, which reached 8.01 percent. However, in value terms, the increase in the minimum wage in this province was only Rp145,234 or lower than in the other three provinces. Central Java Governor Ganjar Pranowo announced the 2023 Provincial Minimum Wage of Rp1,958,169.69, an increase of 8.01 percent or Rp145,234.26 compared to the 2022 Central Java minimum wage of Rp1,812,935.

The limit on minimum wage will come into effect on January 1, 2023. With the stipulation of the 2023 Provincial Minimum Wage, employers are prohibited from paying workers or labourers wages below the minimum limit that has been appointed. However, 10 employers' associations perceive the 2023 Provincial Minimum Wage based on Permenaker Number 18 of 2022 could be burdensome for business actors, to which they submitted a request for a judicial review to the Supreme Court (MA).

Other criticism also came from the trade unions. The President of the Labor Party Said Iqbal said that his group rejected the percentage increase in the minimum wage. The reason is that it is still below the 2022 inflation rate of 6.5 percent plus the economic growth which is estimated at 5 percent.

"If the demands above are not to be considered, starting next week there will be demonstrations in various regions throughout Indonesia to demand a wage increase of 10-13 percent," said Said Iqbal.

BISNIS | RIANI SANUSI PUTRI | IMAJI LASAHIDO (INTERN)

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