In connection with the East Java 2019 Regency / City MSE, contractors are asking the provincial government to comply with the PP regulation no.

SURYA.co.id | SURABAYA – Regarding the setting of the minimum wage for the city / regency (UMK) in East Java, the Indonesian Association of Concessions (Apindo) of East Java is asking the regional government, especially the provincial government of East Java, to respect the applicable rules.

The rule said the president of East Java's Apindo PDP Arief Harsono, namely the PP No. 78 of 2018 regarding the UMK formula that uses inflation rates and economic growth.

For the East Java region, the average number of MSEs increased by 8.03%. Apindo recognizes that the UMK is quite heavy, considering that the number is minimum.

Because of the reality on the ground, he can not just go away. Many components of the business community need to be shared, not just SME-related.

"The regional government is only following the rules of the PP.If otherwise, this (the UMK) can potentially reduce investment and become a perception for investors, especially foreigners, of the disobedience of regions to national regulations" Arief said Friday (11/16/2018). .

Especially in East Java, especially in Ring I, the high UMK rate is almost identical to that of DKI Jakarta.

Even if the inflation rate, economic growth and cost of living of East Java ring I with DKI Jakarta are different.

Compared to other regions, they are very far apart, for example in the East Java region and with neighboring provinces, Central Java and Bali.

These two regions are developing and investing aggressively in the industrial sector.

In East Java, especially in Ring I, it targets many investments, but as MSEs are considered heavy, there are still other investment rules. As a result, investments will go to other areas.

"We want these entrepreneurs, these workers and the government to be able to participate in. Balanced and able to progress together, if economic growth is good, our business will be fine, of course, workers will also receive good rewards," said Arief. .

This 2019 decision on MSEs is not expected to have any negative effects, unlike in previous years, when the increase in SMEs over the last three years had reached 30%, which led Ring I region to leave the factory. Not only in other regions, even to move abroad.

"Once again, the regional government must be firm, maintain the cooperation between that and the long-term investment, and not submit or fear the pressure of an action," said Arief.