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December 10, 2024 | 02:43 pm
TEMPO.CO, Jakarta - Minister of Manpower Yassierli refuted the widespread notion that the increase in the provincial minimum wage (UMP) constitutes a populist policy. Yassierli emphasized that the 6.5 percent UMP increase aligns with current economic realities.
“If [the government seeks] populist measures, the UMP increase could have been set at 10 percent,” Yassierli told Tempo on Monday, December 9, 2024.
He explained that the 6.5 percent UMP increase was determined after carefully considering the weakening of public purchasing power. This significant wage adjustment is intended to gradually enhance the economic well-being of the workforce.
He further elaborated that the UMP increase was established through a comprehensive and inclusive process. Before the final decision, the Manpower Ministry conducted a series of studies and engaged in discussions with labor unions and employer associations through the National Tripartite Cooperation Agency (LKS Tripnas).
“The increase is not drastic. Before the decision was made, we adhered to a mechanism in collaboration with LKS Tripnas. So there was meaningful participation,” said Yassierli.
Initially, the Manpower Ministry proposed a 6 percent UMP increase to President Prabowo. However, after carefully reviewing historical UMP increase data, the Head of State ultimately approved a 6.5 percent increase.
This UMP increase still falls short of the expectations of labor unions. Nevertheless, workers have accepted this decision. Conversely, business circles have expressed disappointment with the 6.5 percent hike. “We acknowledge the objections raised by employers,” Yassierli said.
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