The UMP increases by 8.03%, Kadin: no increase in wages suddenly by 30%: the economy of Okezone

JAKARTA – The Indonesian Chamber of Commerce and Industry (Kadin) welcomed this increase Provincial minimum wage (UMP) in 2019 set by the government. In 2019, the UMP recorded 8.03%.

The president of the Indonesian Chamber of Commerce and Industry (Kadin), Rosan Roeslani, said the formula used to raise the minimum wage gave entrepreneurs certainty about wage increases. This has a positive impact on future business planning.

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According to the 8,240 / M-Naker / PHISSK-UPAH / X / 2018 digital letter, the determination of the UMP and UMK in 2019 uses a formula, namely the minimum wage of the Current year and gross domestic product growth calculated from gross domestic growth IV from the previous year and the second quarter of the current year.

"For entrepreneurs, it is already good, so we do not see any sudden increase in wages by 20 to 30%, but we also know that the period of pilkada is generally uncontrollable," he said. he said at a meeting at the Ritz Carlton Hotel in Jakarta, Tuesday, 23/10/2018).

He added that businessmen had also been able to estimate that the increase in the UMP over the coming year would be in the order of 8%. "We know that this increase has been established between 8% and 9%," he said.

Nevertheless, Rosan noted that the increase in the UMP also had to accompany an increase in worker productivity. According to him, the productivity of Indonesian workers is still low compared to that of other countries.

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So with the increase in productivity, it is expected that Indonesian workers can compete with other state employees.

"The measure in terms of productivity must also be considered, otherwise the comparison between productivity and cost is increasingly tense," he said.

As information, the provincial government will announce the nominal increase in the number of UMPs on November 1, 2018. Later, the decision will come into effect as of January 1, 2019.

(Kmj)