What's Behind Minimum Wage Setting?

workers strike
Summary

Manpower Minister Ida Fauziyah sets the minimum wage of 2021 the same as 2020. The decision is stated in Circular Letter No. M/11/HK.04/X/2020 on Setting of the Minimum Wage for 2021 during the Coronavirus Disease 2019 (COVID-19) Pandemic. "[…]Taking into account Indonesia's economic conditions during the COVID-19 pandemic and the national economic recovery," read an excerpt from Ida's statement from the circular on Tuesday (10/27).

According to Ida, the decision to repeal the 2021 minimum wage raise has taken into account the condition of the business world, which was hit during the COVID-19 pandemic. Ida admitted that she considered the company's ability to fulfill workers' rights, including paying wages. However, workers protested the government’s decision. President of the Confederation of Indonesian Workers Unions (KSPI), Said Iqbal, said there would be opposition from workers, who have also at a disadvantage from the issuance of the Job Creation Law. "The government has no sensitivity over the fate of workers, only looks at the interests of employers," he said.

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