Sitting Together in Search for Solutions

KOMPAS/RADITYA HELABUMI

Masses of workers from various trade unions and labor elements held an action at the Arjuna Wijaya Horse Statue area, Central Jakarta, Wednesday (12/8/2021). They protested the fixing of the provincial minimum wage.

Jakarta Governor Anies Baswedan’s recent revision of the 2022 provincial minimum wage (UMP) has stirred debate.

Trade unions welcome the UMP increase made by the governor. On the other hand, businessmen who are members of the Jakarta chapter of the Indonesian Chamber of Commerce and Industry (Kadin) opposes the decision.ed

By using different calculation bases and sources, the governor decided to revise and increase the 2022 UMP to Rp 4.64 million (US$322.38), up 5.1 percent or Rp 225,667 from the 2021 UMP. Just last month, the Jakarta administration decided to increase the UMK to Rp 37,748 or by 0.85 percent.

Also read:

> Minimum Wage Increase

> Minimum Wage Dilemma

The previous ruling sparked worker protests. Then, Anies sent a letter to Manpower Minister Ida Fauziyah regarding the injustice for workers.

"We assessed that a 5.1 percent UMP increase is a feasibility for workers and still affordable for employers," according to an explanation released by the Jakarta administration.

On the other hand, the chairperson of Kadin Jakarta, Diana, said the determination of the 2022 UMP with a 0.85 percent wage increase had been discussed in the wage council of Jakarta and was approved by all elements. Diana said that most entrepreneurs in Jakarta would continue to follow the 2022 UMP that had been set by the Jakarta Wage Council.

KOMPAS/TATANG MULYANA SINAGA

Thousands of workers demonstrate in the pouring rain in front of the West Java Governor's Office at Gedung Sate, Bandung City, West Java, Tuesday (30/11/2021). They demand an increase in the district/city minimum wage (UMK) in 2022 which will improve the welfare of workers.

The pandemic has hit all sectors, including the business world and also workers. Many workers were laid off because the companies closed down. Tension between workers and employers, if placed in a diametrical position, often occurs. That is precisely where the role of the government is needed to ensure the continuity of businesses and the interests of workers.

Therefore, we encourage all sides to hold another dialogue, whether a tripartite dialogue involving the government or a bipartite dialogue involving workers and employers to reach common ground. Transparency is important so that there is a mutually beneficial relationship between workers and employers. The dialogue should not only be between employers and workers, but also between the Jakarta administration and the Manpower Ministry to find the best solution.

Also read:

> Government Asked to Open Data on Minimum Wage

> Complexity in Setting the Minimum Wage

Employers still need to consider the presence of workers to ensure business continuity. Employers also need to reevaluate how much of a worker's salary is in the cost structure compared to other hidden costs. On the contrary, workers need to understand the difficulties faced by the business world. The key is mutual trust.

Amid the rapid development of the technological revolution, workers are required to improve their skills. The development of artificial intelligence (AI) technology has the potential to replace a number of professions. Research reports have illustrated this, and it has happened in the field, too.

This article was translated by Hyginus Hardoyo.