The Indonesian Employers' Association (Apindo) asked the government to use Government Regulation (PP) No. 36 of 2021 concerning Wages as a reference in setting the minimum wage. "With the plan to stipulate a new formulation in calculating the 2023 UMP/UMK increase, it means that the government is annulling the government's joint efforts in drafting the Job Creation Law," said Apindo Chairman Hariyadi Sukamdani in a press conference in Jakarta, Wednesday. Hariyadi said, if there is a substance change in PP 36/2021, the labor-intensive sector, MSMEs and job seekers will suffer.
He conveyed that labor-intensive sectors such as textiles, garments, and footwear would experience difficulties complying with formal legal provisions because they did not have the ability to pay.
Likewise with MSME business actors who will run their business informally, so they do not get support from government programs and limited market access.
Meanwhile, according to him, it will be difficult for job seekers to find work and the waiting time will be longer to get a decent formal job, given the small amount of job creation due to an uncompetitive wage system.
Apindo urges that in determining the Provincial Minimum Wage (UMP)/District/City Minimum Wage (UMK) 2023, the government follows the provisions of Law (UU) No. 13 of 2003 concerning Manpower and its amendments to the Job Creation Law No. 11 of 2020, as well as PP No. .36 of 2021, namely by following government formulas, variables, and data sources.
"If the provisions in PP 36/2021 regarding wages are ignored, it will further suppress business activity along with the global economic downturn in 2023," he said.
Previously, Apindo revealed that in the quarter towards the end of 2022, the labor-intensive industry, especially textiles and textile products (TPT) including apparel (garment) and footwear products (footwear), was increasingly serious, experiencing enormous pressure from the global market sluggishness that had been felt since the beginning. second half of 2022.
The decline in orders at the end of 2022 and for delivery up to the first quarter of 2023 has decreased in the range of 30-50 percent compared to the same period the previous year.
These conditions have forced Apindo member companies in these sectors to significantly reduce production and the implications are for reduced working hours, even termination of employment (PHK).
"Apindo reminded the government to think seriously about the impact of each policy issued by considering the costs and benefits," he said.