New Minimum Wage Pressures Intensify
The Indonesian government will soon finalize the formulation of the 2022 provincial minimum wage (UMP) and regency/city minimum wage (UMK). The Manpower Ministry, the National Wage Council (Depenas), and the National Tripartite Cooperation Agency (BP LKS Tripnas) have been discussing it for quite some time and are determined to announce the result before the end of October 2021.
Deputy Chairperson of the National Wage Council Adi Mahfudz Wuhadji said that the team was still waiting for the data from the Statistics Indonesia (BPS). He revealed that the dialogue with the government and BP LKS Tripnas resulted in a number of agreements. One of them was that data from BPS should be available no later than November 5 so that normative references can be set before November 10. "The wage formula depends on the BPS data," Adi explained on Wednesday