Employers Challenge Minimum Wage Regulation

Summary

Employers will challenge the Manpower Ministerial Regulation No. 18/2022 on setting minimum wages in 2023. Indonesian Chamber of Commerce and Industry (Kadin) chairman Arsjad Rasjid said the legal step taken by employers is to maintain investment stability, for workers' welfare, and justice. "Kadin, the employers' association, and all of our members have to file for a judicial review," Arsjad said Thursday.

Kadin deputy chairperson for law and human rights Dhaniswara K. Hardjono explained that the government should have continued to use the Government Regulation (PP) No. 36/2021 on wages, secondary legislation of Law No. 11/2022 on job creation in regulating the 2023 provincial minimum wages. "The Job Creation Law is valid within a two-year conditional unconstitutional period. As long as it is still being improved, it is not permitted to issue any new implementing regulation," he elaborated.

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