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Stake Holder : Textile Industry Needs Fundamental Changes

Hundreds of workers at a textile factory in Puwosuman Village, Masaran District, Sragen went on strike. Because of this, they refused to be transferred, allegedly as an effort to reduce the number of employees. Head of the Manpower Office (Disnaker) of Sragen Regency, Muh Yulianto, said that around 250 workers of PT Bintang Asahi Textile Industry (BATI), since Wednesday (23/11/2022). Currently, this problem is being resolved bipartitely. "We encourage settlement by deliberation, the important thing is conducive. A bipartite settlement is being sought between the workers and the company, we hope it can be completed," he said, Thursday (24/11/2022).

The phenomenon of mass layoffs is increasingly rife in Indonesia, both from the textile, apparel and digital sectors. Responding to this phenomenon, economist and Director of Celios Bhima Yudhistira said that the government must immediately take swift steps to deal with the problem. "The government must immediately issue a policy package to anticipate these mass layoffs, and do not rule out the possibility that sectors that are vulnerable, for example, with an increase in interest rates, such as the property, motor vehicle and construction sectors, will make efficiency or reduce the number of employees," said Bhima to the MNC Portal. Indonesia in Jakarta, Wednesday (23/11/2022).

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.


Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development, Sarman Simanjorang, responded to the government's decision regarding the 2023 provincial minimum wage (UMP) increasing by a maximum of 10 percent through Minister of Manpower Regulation (Permenaker) No 18 of 2022. Sarman admitted that business actors were surprised by this policy. He said that his party would continue to comply with regulations regarding wage arrangements according to Government Regulation No. 36 of 2021, which is a derivative regulation of the Job Creation Law (Ciptaker).

The increase in the Provincial Minimum Wage (UMP) for 2023 is being discussed between employers and workers. Deputy President Director of PT Pan Brothers Tbk Anne Patricia Sutanto said the government needs to be consistent with the implementation of Government Regulation (PP) No. 36 of 2021 concerning Wages. "We are guided by the Government needing to be consistent with PP 36 of 2021. In accordance with what has been conveyed by the Ketum APINDO," he told CNBC Indonesia, Monday (21/11/2022). APINDO said, if there is a change in the substance of PP 36 of 2021, this will show the government's uncertainty in carrying out fundamental structural reforms of the Indonesian economy.