Manpower Minister Says Minimum Wage Rise Decision to be Announced in November

TEMPO.CO, Jakarta – Manpower Minister Ida Fauziyah responded to the labor organizations’ demand to increase the minimum wage by 15% in 2024. According to Ida, the demand will be processed by the National Wages Council (Depenas) while drafting the amendment of Government Regulation No. 36 of 2021 concerning wages.

“The decision [on minimum wage rise] will be announced in November. We are currently gathering aspirations to amend the Government Regulation No. 36 of 2021, it’s constantly being discussed,” said the minister in Central Jakarta on Wednesday, August 16, 2023.

Ida mentioned that the ministry has heard the aspiration of several provinces and all stakeholders, including companies who opposed the proposition. “We will listen to the companies and the workers in Depanas. The council will then recommend [on minimum wage decision] to the ministry,” she said.

According to Ida, if economic growth and inflation are maintained, a minimum wage rise is inevitable. “We are using the data from Statistics Indonesia,” she added.

However, the President of the Confederation of Indonesian Trade Union Said Iqbal said that the demand to increase the minimum wage by 15% is one of the main agenda of the worker’s protest on July 26, 2023. 

According to Iqbal, the demand is a strategy to increase purchasing power. When the purchasing power strengthened, the consumption rate also strengthened, benefiting the economy.

“This is simple economics since they not only cut [workers’] wages but also laid off millions of workers,” Said concluded.

MOH. KHORY ALFARIZI

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