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Home arrow Latest News arrow Wages Rise, Industry Increases Productivity


				
			
			
Wages Rise, Industry Increases Productivity PDF Print E-mail
Written by Maizer   
Monday, 21 October 2019

An increase in the minimum wage of 8.51% next year will affect the industrial sector, especially in terms of production costs and product selling prices. Industry players also prepared several adjustments to keep growing amid the current economic slowdown.

 

The chairman of the Indonesian Textile Association (API), Ade Sudrajat Usman, claimed the minimum wage increase would affect labor-intensive industries such as textiles and garments.

 

The Confederation of Indonesian Trade Unions (KSPI) rejected an increase in the provincial minimum wage (UMP) of 8.51 percent as stated in the Circular of the Minister of Manpower. Because this increase refers to Government Regulation Number 78 of 2015 concerning Wages (PP 78/2015) which has been rejected by Indonesian workers.

 

According to KSPI President Said Iqbal, what the government should have done was to immediately revise PP 78/2015, specifically related to the article on the formula for minimum wage increases.

 

"Thus, the basic calculation of the UMP must be preceded by a survey of the needs for a decent living in the market," Iqbal said in a written statement in Jakarta, Friday (10/18/2019).

 

He further explained that the KHL used in the market survey was the new KHL, which had been improved in quality and quantity. The new KHL numbered 78 items from the previous 60 items.

 

According to information, the new KHL has been agreed by the National Wage Council to 78 items. However, KSPI calculated that the new KHL was 84 items.

 

According to Said Iqbal, if the calculation of the increase in the minimum wage is calculated based on the new KHL, then the increase in the minimum wage in 2020 ranges from 10 to 15 percent.

 

"Therefore, workers reject the minimum wage increase of 8, 51 percent," he stressed.

 

Moreover, in the Manpower Law, the legal basis for increasing the UMP / MSE is to calculate the KHL from a market survey. After the survey results are obtained, the amount of the minimum wage increase is negotiated in the Regional Wage Council by taking into account other factors.

 

 
		
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