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Saturday, 10 December 2022 14:53

Workers' Minimum Wage Increases, Prepare for Crisis

Written by  Rahma
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The Labor Party and labor union organizations appreciate the Indonesian government for issuing the Minister of Manpower Regulation (Permenaker) No. 18/2022 concerning the Determination of the 2023 Provincial Minimum Wage (UMP). The regulation was issued on Saturday (19/11) with the 2023 Provincial Minimum Wage set to increase by 10 percent.

The President of the Labor Party, Said Iqbal in a virtual press conference, Sunday (20/11) said that the Labor Party and labor union organizations appreciated and thanked President Joko Widodo and Minister of Manpower Ida Fauziyah for the issuance of the new regulation. Iqbal hopes that the new regulations will become the basis for the government, starting from the central and regional governments, to determine increases in the provincial minimum wage or UMP as well as district and city minimum wages (UMK). He also hopes that the regulation, which will take effect as of January 1, 2023, will become the legal basis in the following years.

The government's move to increase workers' wages by 10 percent is the right step. This increase is very meaningful, considering that next year will be a gloomy year in the economic field, as has been touted by most world leaders, including President Joko Widodo. President Joko Widodo stated that 2023 is predicted to be a dark year due to the economic, food and energy crises due to the Covid-19 pandemic and the war between Russia and Ukraine. The President admitted that he got the prediction after talking to the Secretary General of the United Nations, the International Monetary Fund (IMF) and the heads of the G7 countries.

It is hoped that the policy of increasing workers' wages by 10 percent will prevent workers from falling into extreme poverty as a result of the crisis.

Although some workers are disappointed because the increase is only 10 percent, they also have to understand that the government must also protect employers so that they are not too burdened by high wages for workers. The economic crisis will befall anyone, the government, employers and workers alike. The government must ensure that the business being carried out does not stop because of the crisis. If the company goes bankrupt, workers will automatically lose their jobs. Therefore, the understanding and support of all parties are needed so that the Indonesian people together can stand firm amid the economic crisis.

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