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November 25, 2024 | 05:23 pm
TEMPO.CO, Jakarta - President Prabowo Subianto gathered several ministers at the Presidential Palace in Jakarta on Monday, November 25, 2024, for an internal meeting discussing the 2025 provincial minimum wage.
Minister of Manpower Yassierli said he needed to report several labor-related matters to Prabowo, who recently returned from his overseas trip since November 8.
"And to update his directives,” Yassierli said before meeting Prabowo at the Jakarta Presidential Palace complex. "Perhaps one of them (discusses provincial minimum wage)."
Yassierli declined to elaborate further on his statement, including the provincial minimum wage, locally abbreviated as UMP, that has been underscored by labor unions in Indonesia. "We'll see," he said.
The meeting took place at 3:00 p.m. Jakarta Time, based on the information received. Minister of State Secretary Prasetyo Hadi and Minister of Justice Supratman Andi Agtas were reportedly among those invited to the meeting.
The Ministry of Manpower delayed the determination of 2025 provincial as well as regency/city minimum wages. The regulation was supposed to be released on Thursday, November 21, based on Government Regulation No. 51 of 2023.
The 2025 UMP determination was reportedly delayed as President Prabowo had yet to return from his working trip overseas. The head of state concluded his first official foreign tour on Sunday, after 21 days abroad.
Workers Reject the Draft Ministerial Regulation
Labor Party President Said Iqbal rejected the proposal for a new Minister of Manpower Regulation on the 2025 minimum wage. Said, who also serves as the president of the Indonesian Trade Union Confederation (KSPI), said in a joint statement of labor unions across Indonesia that the new bill conflicted with Constitutional Court Decision No. 168/PUU-XXI/2023.
The draft law divided minimum wage increases into two separate categories: labor-intensive industries and capital-intensive industries.
Said Iqbal, through a written statement confirmed by Tempo on Monday, November 25, said that the Constitutional Court only stated that the minimum wage increase considers inflation, economic growth, and certain indices while considering decent living cost (KHL) proportionality.
Workers also brought up the issue of failure to pay based on the 2025 minimum wage, which the draft law mentioned shall be negotiated at the company's bipartite level. Unions rejected the proposal as the Constitutional Court already decided that the minimum wage is determined by the Regional Wage Council.
Another rejected point in the Ministerial Regulation draft is about the sectoral minimum wage, which is planned to be handed over in bipartite negotiations at the company level.
"It is clear that the draft ministerial regulation contradicts the Constitutional Court decision, thus rejected by workers,” said Said Iqbal.
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