If you own a company in Indonesia, it’s important to keep up to date regarding any changes to rules and regulations, especially those concerning local staff and wages. Local newswires, including Tempo are reporting that Manpower Minister, Ida Fauziyah has lauded the adjustment of the 2023 Provincial Minimum Wage (UMP) and said that the minimum wage regulation issued by her has succeeded in accommodating workers’ and employers’ interests.
“The stipulation (of the 2023 UMP) is one of our supports for maintaining the purchasing power of employees and encouraging (national) economic growth to advance,” she said in a statement issued on Tuesday.
She invited all parties to comply with the governors’ decision on the 2023 UMP and asked them to strengthen bipartite dialogue so that the UMP can be implemented properly.
So far, 33-governors have set the 2023 UMP in their respective regions, according to the Manpower Minister’s Regulation (Permenaker) Number 18 of 2022 concerning the determination of the 2023 minimum wage.
Fauziyah said that her ministry is waiting for other governors to determine the UMP soon since it will take effect from January 1, 2023.
According to data on UMP reported to the Manpower Ministry, West Sumatra province has recorded the highest increase in UMP. The province’s UMP has been raised 9.15-percent to IDR 2.7-million in 2023 from IDR 2.5-million in 2022.
Meanwhile, the lowest increase has been reported in North Maluku province, where the UMP has been raised 4-percent to IDR 2.98-million in 2023 from IDR 2.87-million in 2022.
Fauziyah noted that the adjustment of the 2023 UMP based on Permenaker Number 18 of 2022 has succeeded in providing a middle way for employers and workers; as can be seen from the average increase in the UMP of 7.50-percent.
“Thus, the purpose of the issuance of the Permenaker, namely as a middle way for all stakeholders involved in setting the minimum wage, has truly been achieved,” she remarked.
In addition, she emphasized that the imposition of the minimum wage only applies to workers with one year of service or less.
Meanwhile, the Jakarta provincial government is planning to increase its 2023 UMP to IDR 4.9-million from IDR 4.6-million in 2022.
Source: Tempo, Invest Indonesia
