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KSPI on Apindo's lawsuit plan over minimum wage: Don't add fuel to fire

Tempo - December 20, 2021

Khanifahjuniasari, Jakarta – The Indonesian Workers Union Confederation (KSPI) chairman Said Iqbal assessed that the Jakarta Employer Association or Apindo Jakarta's plan to file a lawsuit against Anies Baswedan over matters related to the revised regulation on the 2022 provincial minimum wage (UMP) would add fuel to the fire.

"Once again, this will lead to an escalation of the labor actions in Jakarta and throughout Indonesia," he said at an online press conference on Monday, December 20, 2021.

According to Iqbal, the Jakarta Governor took into account the interests of all parties in raising the city's minimum wage, including the interests of entrepreneurs.

Iqbal recalled that the 2021 minimum wage was increased by 3.14 percent although last year's economy was worse than this year. Therefore, the increase in next year's minimum wage should be higher up to 5.1 percent given a better economy.

"The increase in Jakarta's minimum wage by 5.1 percent is based on projections that there will be an increase in consumption in line with 4-5 percent economic growth in 2022," he outlined.

According to him, Apindo would gain benefit since Bappenas (National Development Planning Agency) had even predicted a national growth in purchasing power of up to IDR 180 trillion.

"Which entrepreneurs whom Apindo represents? It is the entrepreneur who will reap benefits," Iqbal added.

As previously reported, Apindo chairman Hariyadi B. Sukamdani planned to sue Anies Baswedan to the Jakarta State Administrative Court (PTUN) once the revised policy on the 2022 provincial minimum wage is passed.

Source: https://en.tempo.co/read/1541364/kspi-on-apindos-lawsuit-plan-over-minimum-wage-dont-add-fuel-to-fir