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Anies Baswedan underlines common sense in raising minimum wage by 5.1%

Tempo - December 21, 2021

Lani Diana Wijaya, Jakarta – Jakarta Governor Anies Baswedan outlined the objective and rational reasons behind his decision to revise the increase in the 2022 provincial minimum wage (UMP) from 0.8 percent to 5.1 percent. He asked all parties to look into and calculate the amount objectively.

According to Anies, the 5.1 percent will not be as high as in previous years. At the same time, the revision was not as low as last year.

"The economy is growing this year. How can we say that a 0.8-percent hike is a right amount? Just use common sense," said Anies at the City Hall, Central Jakarta on Monday, December 20, 2021.

Anies recently decided to revise the regulation on the increase of the 2022 UMP. Previously, the increase was set at 0.85 percent or equal to IDR 37,749 of this year's UMP of IDR 4,453,935. The revision later increases the number to IDR 225,667 or equal to 5.11 percent. Consequently, Jakarta's provincial minimum wage for 2022 will be IDR 4,641,854.

Anies reiterated that the city's minimum wage in the last six years had an average increase of 8.6 percent. Meanwhile, last year's figure was dropped by 3.3 percent in the wake of the COVID-19 pandemic.

He argued that Jakarta's economic condition has been improving this year, so the 2022 UMP would be increased by 5.1 percent. He also considered the increase affordable for entrepreneurs.

"Imagine that the economy is already better, but when using a formula [to calculate the hike in the minimum wage], the figure is 0.8 percent. It's disturbing the sense of justice, isn't it? It's really simple," Anies said.

Source: https://en.tempo.co/read/1541430/anies-baswedan-underlines-common-sense-in-raising-minimum-wage-by-5-