Remuneration Council Prefers Old Formula to Calculate UMP

TEMPO.CO, Jakarta - Sarman Simanjorang, a member of Jakarta's Remuneration Council stated that his institution had already agreed to use an old formula stated in Law No. 13/2003 to determine the 2016 provincial minimum wage (UMP). "We do not use the formula stipulated on Government Regulation No. 78/2015," Sarman said at the City Hall on Tuesday, October 27, 2015.

Sarman explained that the Remuneration Council had determined the value of basic living needs (KHL) at Rp 2,980,204 based on four surveys conducted from June to October 2015. Another reason to use the old formula, Sarman said, was the large number of laborers who disagree with Government Regulation No. 78/2015. "We had just received the copy of the regulation yesterday," said Sarman who also serves as the Vice Chairman of the Jakarta Chamber of Commerce and Industry.

Sarman further explained that the new formula stated in Government Regulation No. 78/2015 is not much different compared to the old formula.

According to Hadi Broto, Secretary of the Remuneration Council, the person who has the authority to decide which formula will be used in determining the UMP is Jakarta Governor Basuki Tjahaja Purnama. Hadi said that the Remuneration Council is only allowed to propose which formula to use. "It all depends on the governor," Hadi said.

ERWAN HERMAWAN