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The Regulation of the Minister of Manpower (Permenaker) Number 18 of 2022 concerning Setting the Provincial Minimum Wage (UMP) is considered very burdensome for business actors. The Indonesian Employers' Association (APINDO) will ask for a judicial review to the Supreme Court (MA) in the aftermath of this policy. Because, with the plan to stipulate a new formulation in calculating the 2023 UMP/UMK increase, it means that the government is annulling the joint efforts driven by the government itself in drafting the Job Creation Law which has been carried out with extraordinary efforts.

"Permenaker 18 that we are going through Apindo will ask for an MA judicial review. And because this violates the Ciptaker Law and PP 36 which incidentally is higher in statutory terms," ​​said Member of the Advisory Council of the Indonesian Employers' Association (APINDO) and Deputy Chair of the Indonesian Textile Association (API) Anne Patricia Sutanto, Tuesday (22/11/2022).

Anne revealed that currently the company is still using the PP 36 of 2021 scheme to increase the UMP for its employees. "We have focused on an increase based on PP 36 of 2021," he said.

According to him, the government needs to be consistent with the implementation of Government Regulation (PP) No. 36 of 2021 concerning Wages. "We will continue to carry out increases according to PP 36 of 2021," he said.

Anne revealed that the impact of these regulations will greatly impact the potential for Termination of Employment (PHK) because the burden will be borne by employers.

According to him, currently business actors are under pressure. APINDO has also disclosed that in the quarter towards the end of 2022, the Labor-Intensive Industry, especially Textiles and Textile Products (TPT) including Garments and Footwear Products, is increasingly serious, experiencing enormous pressure from the global market sluggishness that has been felt since the beginning. second half of 2022.

The decline in orders at the end of 2022 and for delivery (shipment) until the first quarter of 2023 has decreased in the range of 30-50% 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).

"You don't need to be based on Permenaker 18, the UMP/UMK is just now, in 2022 there have been many (layoffs) really," he added.

Labor-intensive sectors such as textiles, garments, footwear, and others will again experience difficulties in fulfilling compliance or compliance with formal legal provisions because they do not have the ability to pay.

"Yes, if you add Permenaker 18 of 2022 which exceeds and exceeds PP 36 of 2021, just be logical... the impact will be," he said.

For information, based on reports from APINDO members in West Java that 111 companies have reduced the number of employees and even 16 companies have closed their production operations which has resulted in a total reduction of 79,316 employees in West Java.

From the footwear sector, based on reports from 37 (thirty seven) shoe factories with a total of 337,192 employees, 25,700 (twenty five thousand seven hundred) employees have been laid off because from July - October 2022 there has been a 45% decrease in orders , and for production November - December 2022 it will drop by up to 51%.