Employers agree to establish a fixed minimum wage formula based on Government Regulation (PP) number 36 of 2021 concerning Wages. Deputy Chairperson of the Indonesian Textile Association (API) Anne Patricia Sutanto said the business world, including the textile and textile product (TPT) industry sector, would continue to follow government regulations regarding wages. Namely Government Regulation (PP) number 36 of 2021 concerning Wages. "That's right (still referring to PP 36/2021)," said Anne, Sunday (25/9).
Anne said that the textile industry still needs to be vigilant, as the purchasing power of the public and internationally is inversely proportional to the price of fuel oil (BBM).
However, he is optimistic that the economy will improve. Anne also ensures that there will be no layoffs because the textile and textile product industry always focuses on productivity, added value and increasing value.
"The point is to increase our value so that the competitiveness of Indonesian textile products remains sustainable," said Anne. Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Manpower, Adi Mahfudz Wuhadji, assessed that there would be a propagation impact from the increase in volatile foods inflation and inflation from administered prices.
Thus, core inflation has the potential to rise at the end of this year. "Recent estimates suggest core inflation at the end of this year could be slightly higher than 4 percent," Adi said.
Adi stated that Kadin would wait for the Wage Council to work first to fulfill these prerequisites. Kadin will also of course comply with the appeals and policies of the Government through the Ministry of Manpower.
"It should also be noted that last year the data from BPS for the determination of the UMP was issued on November 5, so there is a possibility that this year it will be issued on November 5 as well," said Adi.
Kadin said that the determination of the minimum wage in 2023 still refers to Government Regulation Number 36 of 2021 concerning Wages, which is one of the derivatives of the Job Creation Law, and the formula for determining the minimum wage only refers to economic and labor conditions.
This includes variables such as purchasing power, labor absorption rate, and median wages.
Wages are adjusted annually with an upper and lower limit, the upper limit is determined based on the average consumption per capita and the average number of household members working in each house and of course will use a formulation that is in accordance with Government Regulation 36 of 2021.
“That's what the PP mandates, actually it's just a matter of adjusting it to economic growth or regional inflation, whichever is higher for adjustment. Once again, when it comes to setting the minimum wage, the government will definitely use PP 36 of 2021 concerning Wages," Adi concluded.
Meanwhile, President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal said the increase in fuel prices would reduce the purchasing power of the lower class.
Simultaneously, the Minister of Manpower has said that the 2023 wage increase uses PP number 36 of 2021 concerning Wages which incidentally is a derivative rule of the omnibus law of the Job Creation Law. "Increase the minimum wage in 2023 by 10-13%," said Said Iqbal.