Jakarta – Minister of Manpower (Menaker) Yassierli responded to the disappointment of the Indonesian Employers Association (Apindo) regarding the 6.5 percent increase in the provincial minimum wage or UMP 2025. He admitted that he did not know why the business group was disappointed with the policy.
“I don’t know, maybe you can ask them what they mean,” said Minister of Manpower Yassierli in Jakarta, Tuesday (3/12/2024).
This is because the Ministry of Manpower has processed all inputs related to the 2025 UMP increase, involving business groups, including Apindo and labor unions.
“So if I read what Apindo friends say, the process of the National Tripartite Cooperation Council (LKS Tripartit) that requires meaningful participation has already been carried out by us. This means that our process is complete,” he added.
The Minister of Manpower recounted that the process of discussing the minimum wage increase has gone through the National Wage Council (Depenas) and the National Tripartite Cooperation Institution. (LKS Tripnas). The initial proposal given for the 2025 UMP increase was 6 percent.
“Then I, as the Chairman of the Tripartite LKS, reported to Mr. Prabowo, here are the results of our discussion in the Tripartite LKS.” We proposed a 6 percent increase. Then, considering the desire to improve workers’ purchasing power, the President said 6.5 percent, and that was announced,” he explained.
Threat of layoffs?
When asked about the possibility of massive layoffs due to the increase in the minimum wage, Yassierli wants to see the decision integrated with other economic policies.
“This will be implemented in January 2025. We can definitely relate it, what strategic programs does the President have for 2025. Then the economic policies, whether they are related to fiscal matters and so on, we have time,” he said.
“We have efforts related to productivity improvement and so on. So we must treat it as a whole, not separate,” emphasized the Minister of Manpower.
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