JAKARTA. Ahead of the end of 2016, labor associations start proposing the rate of wages rise. In Jakarta, labors demanded a 23.5% of increase in provincial minimum wages (UMP) from Rp 3.1 million per month in 2016 to Rp 3.83 million per month in 2017.
President of Indonesia Labors Unions Association (Aspek Indonesia) Mirah Sumirat claimed that the proposal was made based on the result of the survey on proper live needs (KHL). The survey was conducted by Aspek Indonesia and Jakarta Forum of Machinery and Metal Electronic Labors Unions (FSP LEM) at All Indonesia Labors Union (SPSI).
The institutions conducted surveys on the price rise in 60 components of Proper Life Needs (KHL), which are stated under the Minister of Manpower Regulation No13/2012 on Components and the Phases for Achieving Proper Live Needs. The independet surveys were located in seven traditional markets, such as Cempaka Putih, Gondangdia, Jatinegara, Cengkareng, Santa, Sunter, and Koja, as well as two modern markets, such as Hero Kemang and Carefour Buaran.
The results of the survey show that the KHL value in Jakarta in 2016 is Rp 3.49 million. Aside of the KHL, the estimation for minimum wages in 2017 should include a 4% of inflation rate target in 2017, 2.4% of inflation rate in Jakarta, 3.07% of annual inflation rate as of September 2016, a 5.74% of Jakarta economic growth in 2016, and a 5.04% of national economic growth target in 2017.
“(Based on the calculation) therefore the labors proposed an increase in Jakarta’s UMP in 2017 minimum at the level of Rp 3,83 million”, said Mirah.
Meanwhile, President of Indonesia Labors Union Confederation (KSPI) Said Iqbal claimed that aside of in Jakarta, labors unions in Bogor, Depok, Tangerang, Bekasi, Karawang, Batam, Cilegon, Surabaya, Sidoarjo, and Mojokerto have also proposed the increase in local UMPs, which are ranging from Rp 600,000 per month to Rp 750,000 per month.
Mirah claimed that the existing Government Regulation on minum wages calculation is not effective to anticipate the decrease in labors’ purchasing power, which is affected by inflation and the increase in the prices of life necessities. Therefore, Mirah called local governments to not estimate the provincial minimum wages (UMP) merely based on the Government Regulation on Wages.
“In fact, the regulation contradicts to the superior law, namely Law No13/2003 on Employment, which stipulates minimum wages calculation should refer to KHL (Proper Life Needs)”, Mirah said.
Jakarta Provincial Wages Board is scheduled to hold meeting on the calculation of 2017 UMP. Jakarta Provincial Wages Board Sarman Simanjorang said the calculation will only refer to Government Regulation No 78/2015 on Wages. Sarman stressed that the regulation has provided clear legal basis on the calculation.
Furthermore, Sarman mentioned that the law was formulated based on inputs from all related stakeholders, including labors, employers, and government. In other words, there is no valid reason to not implement the regulation. “We (the employers) will calculate the 2017 UMP based on Government Regulation No78/2015, as well as economic growth and inflation rate”, Sarman added.
