Jakarta Follows Ministry's Request; No Minimum Wage Hike for 2021

TEMPO.CO, Jakarta - Jakarta has decided to set its provincial minimum wage according to a circular from the Minister of Manpower, Ida Fauziah, issued on October 26. The circular asked all governors to set the minimum wage for 2021 at the same amount as 2020's minimum wage.

"All provinces are following the circular. Not only Jakarta," Jakarta's Manpower and Transmigration Office's secretary, Hedy Wijaya, told Tempo on Thursday, October 29.

The letter also asked the governors to determine and announce the amount of their respective province's minimum wage by 31 October 2020.

Hedy said that the government held a meeting with employers and labor associations on Tuesday, October 29, and decided that next year's minimum wage would not increase, citing the current economic conditions amid the Covid-19 pandemic.

"DKI's decision will be announced on November 1," he said.

The minister's decision sparked protests. Dedi Hartono, a member of the Council for Wages of Jakarta Workers Union Association (Aspek), said that as the nation's capital Jakarta has a central position, thus it should still consider referring to Government Regulation No.78 of 2015 on Wages.

The rule said that minimum wage increases must take into account inflation and economic growth. "DKI's economy can still grow by 3.3 percent," he argued.

"We reject the circular letter. It is of our opinion that the rule is only an appeal, so it does not have to be followed," said Dedi when contacted, Wednesday, October 28.

Dedi said that although the world's economy is challenged by the pandemic, there are still business sectors that continue to grow, such as telecommunications.

Read: Jakarta Deputy: No Raise in City's 2021 Minimum Wage Policy

Imam Hamdi