Minimum Wage Increase Still Too Low

The average increase in the 2022 minimum wage is only 1.09 percent and is generally below the inflation rate of each province. There should be a renegotiation so the buying power of workers does not get worse.

KOMPAS/RADITYA HELABUMI

Workers members of the Federation of Indonesian Metal Workers Union (FSPMI) held an action to voice the determination of the 2022 minimum wage in the Silang Monas area, Jakarta, Tuesday (9/11/2021).

JAKARTA, KOMPAS — Based on a new formula as stipulated in the Government Regulation No. 36/2021 on Wages, the increase in the minimum wage for 2022 is set at an average of 1.09 percent. The increase is generally below the inflation rate in each province. More negotiations are needed to determine a fair increase in the minimum wage so that workers’ buying power will not be further depressed in the midst of the pandemic.

However, the Manpower Ministry considers that the minimum wage in Indonesia has already been too high for businesspeople. The minimum wage in almost all regions has exceeded the median wage. This can be seen from the low compliance of business owners in fulfilling the minimum wage.