Wages for 2021 do not increase, KSPI compares with the era of President Habibie

JAKARTA, KOMPAS.com – President of the Confederation of Indonesian Trade Unions ( KSPISaid Iqbal assessed that the government is less sensitive to the fate of workers after deciding not to raise wages next year.

He understands that many businessmen have also been hit by the pandemic. However, workers are considered to face more difficult conditions than employers. Therefore, according to Said, the government should have acted more fairly.

“Do not be beaten flat by all the poor companies,” Said said in a written statement, Tuesday (27/10/2020).

Also read: 2021 Minimum Wage Does Not Rise Due to Pandemic, Labor: Reverse Logic!

He also compared the current government’s attitude with the attitude of the government in the era of the leadership of the third President of the Republic of Indonesia, BJ Habibie. At that time, even though Indonesia’s economic conditions were hit by the crisis, the government continued to improve labor wages next year.

“The fact is that in 1998 there was still an increase minimum wage to maintain people’s purchasing power, “he said.

For example, at that time the minimum wage in DKI Jakarta increased by about 16 percent from 1998 to 1999. Meanwhile, at the same time the economic growth was minus 17.49 percent.

“Likewise with the minimum wage from 1999 to 2000, the minimum wage still increased by around 23.8 percent, whereas the economic growth in 1999 was minus 0.29 percent,” he said.

Also read: Central Government Does Not Raise Minimum Wage 2021, Reward mentions Will Not Hurry

Therefore, he views that the government’s reason for not raising labor wages due to minus economic growth is not correct.

On the other hand, he is worried that if labor wages do not increase, the people’s purchasing power will actually decrease. This condition can have a negative impact on the level of consumption, thus potentially having a negative impact on the national economy.

In addition, he added, not all companies are experiencing difficulties due to the pandemic. Therefore, he asked that the wage increase policy be carried out proportionally.

Previously it was reported, the Minister of Manpower Ida Fauziyah confirmed that there would be no increase in the minimum wage next year, both the provincial minimum wage (UMP) and the district / city minimum wage (UMK).

This is stated in the Circular Letter Number M / 11 / HK.04 / X / 2020 concerning Stipulation Minimum Wage 2021 during the Corona Virus Disease 2019 (Covid-19) Pandemic.

The reason for the government not to raise the minimum wage next year is that Indonesia’s economy is currently in a recovery period. According to the government, the increase in wages in 2021 will actually be burdensome to the business world.

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