Jakarta, hitclubapk3 Indonesia
—
Indonesian Employers Association (
Apindo
) confirms the increase
Wages
Provincial Minimum (
UMP
) cannot be generalized.
General Chairperson of Apindo Shinta W. Kamdani said that economic conditions, inflation, the need for a decent living and regional industrial capabilities vary.
“Business actors are clear that we cannot generalize the minimum wage for all of Indonesia. So each one is in accordance with the conditions of their respective regions, be it economic conditions, existing inflation, basic living needs,” said Shinta in
media briefing
at the Apindo Office, South Jakarta, Tuesday (25/11).
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He explained that increasing the UMP still requires a formula to adjust the conditions of each region so that Apindo cannot provide a percentage increase in the UMP.
In this way, he emphasized that entrepreneurs need a calculation formula to determine the increase in the UMP.
“So we are again saying that we cannot give one percentage because what we need is a formula. The formula already concerns the aforementioned problems, economic problems, productivity, KHL, etc. So it cannot be generalized that this is 7 percent, 8 percent, it cannot be, it depends on what the area is like,” he added.
Meanwhile, Deputy Chair for Manpower Apindo Darwoto emphasized that in the business world the importance of implementing the alpha value wisely.In this way, minimum wage policies can be in line with regional economic conditions, productivity levels and business capacity in each sector.
For information, alpha is an index of labor contribution to the economic growth of a region.
“The amount of alpha must be determined proportionally, because economic growth does not only depend on labor factors, but also on other production factors such as investment/capital, technology, and
total factor productivity
(TFP) which reflects efficiency, innovation and increased production capacity.”Thus, alpha cannot be applied uniformly in all regions,” said Darwoto.
Then, calculating the alpha amount in a region ideally takes into account the condition of the UMP ratio to Decent Living Needs (UM/KHL), especially whether the ratio is above or below the national average.This means that this data-based approach to alpha values produces a more objective and fair wage policy.
“The business world believes that the government will consider these aspects wisely and judiciously in determining the alpha value in the regulations that will soon be issued, so as to create a balance between worker protection and business sustainability,” he explained.
In addition, the business world emphasizes the importance of including economic indicators and productivity as the main variables in determining the alpha value.
This approach is in line with Constitutional Court Decision Number 168/PUU-XXI/2023, which emphasizes a balance between improving worker welfare and business sustainability.
On the same occasion, Apindo’s Head of Employment, Bob Azam, said the minimum wage should be a safety net (
safety net
), not a universal wage standard.
“Apindo emphasizes that the minimum wage must return to its basic function as a safety net and
threshold
“It’s not a universal wage standard,” said Bob.
He also said that government support for facilities and infrastructure is also important in determining the minimum wage.
“Government support for work facilities and infrastructure is also important, because this will also determine
cost of living
, influence with
cost of living
“The efficiency of the cost of living is influenced by the quality of work facilities and infrastructure,” he added.
Furthermore, Deputy General Chairperson of Apindo Sanny Iskandar said that entrepreneurs are actually not afraid of paying high wages, but are actually worried about paying expensive wages.
“Yes, this expensiveness means that here there is an element of competitiveness, there is an element of productivity itself. So actually that is
fair
, what is measured is compared with other countries, it is not the actual height of wages, but productivity.”Because productivity represents the ratio between the effort paid and the output produced by workers,” said Sanny.
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