Caesar Akbar, Jakarta – Manpower Minister Hanif Dhakiri has inked a circular letter for all governors across Indonesia regarding the increase in the minimum wage of provinces (UMP) and regencies/cities (UMK) in 2020. The hike is set at 8.51 percent.

"The increase of UMP and UMK in 2020 has been adjusted to the national inflation and economic growth by 8.51 percent," as quoted from the circular passed on Tuesday, Oct. 15.

Referred to the Central Statistics Agency (BPS) dated October 2, 2019, the national inflation rose by 3.39 percent, and the economic growth jumped by 5.12 percent.

The minister also demands governors to set the next year's minimum wage following Government Regulation No. 78/2015 concerning wages, as well as the provincial wages board.

Should the board's term of office has ended, Hanif orders governors to immediately form a new one. The UMP 2020 must be tapped and announced by every governor simultaneously on November 1, 2019, while the UMK on no longer than November 21, 2019.

"The new UMP and UMK will take effect on January 1, 2020," Hanif remarked on the letter.

Meanwhile, regions with the minimum wage below the decent standard of living (KHL) should adjust its UMP or UMK. Seven provinces that must regulate their UMP in line with the KHL are Central Kalimantan, Gorontalo, West Sulawesi, East Nusa Tenggara, West Papua, Maluku, and North Maluku.

Source: https://en.tempo.co/read/1261156/govt-raises-provincial-minimum-wage-by-8-51-percent