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Jakarta court strikes down governor's decree on 2022 minimum wage

Antara News - July 12, 2022

Dewa W, Kenzu T, Jakarta – The Jakarta State Administrative Court (PTUN) has overturned Gubernatorial Decree No. 1517 of 2021 on the 2022 Provincial Minimum Wage (UMP) for which a lawsuit was filed by several entrepreneurs.

The Jakarta PTUN, through the Case Tracing Information System (SIPP) page accessed here on Tuesday, explained that the ruling on the lawsuit, which was conducted electronically, has granted all claims from the plaintiff, which was the Jakarta Regional Leadership Council of the Indonesian Employers Association (Apindo).

In addition to revoking the Governor's Decree, the Jakarta PTUN, in its ruling also requires Governor Anies Baswedan, as the defendant, to revoke his decree No. 1517 of 2021 on the 2022 Provincial Minimum Wage issued on December 16, 2021.

According to another ruling, Baswedan is required to issue a new state administrative decree regarding the 2022 provincial minimum wage that is based on the recommendation of the Jakarta Wage Council, which amounts to Rp4,573,845.

The court also fined the governor, as the defendant, and the intervening defendants II to jointly pay the case fee amounting to Rp642 thousand.

Earlier, Baswedan had revised Governor's Decree No. 1395 of 2021 to increase the 2022 UMP by 5.1 percent, or Rp225,668, from the 2021 UMP of Rp4,416,186.

The increase in amount was greater than the earlier set hike of Rp37,749, or 0.85 percent.

With the 2022 UMP revision, the plaintiff registered a lawsuit with the Jakarta PTUN on January 13, 2022.

Meanwhile, Chairman of the Indonesian Employers Association Hariyadi Sukamdani viewed that Governor Baswedan had violated the wage regulation, which is the Governmental Regulation (PP) No. 36 of 2021, due to the revision.

"In this case, Jakarta Apindo has expressed objections because if it (the increase) is done, it will violate PP 36/2021," he noted in an online press conference in Jakarta on December 20, 2021.

Source: https://en.antaranews.com/news/238889/jakarta-court-strikes-down-governors-decree-on-2022-minimum-wag