JAKARTA, KOMPAS.com – The President of the Confederation of Indonesian Workers’ Unions (KSPI), Saeed Iqbal, assessed that the government is less sensitive to the fate of workers after deciding not to increase wages next year.
He understands that many businessmen are affected by the pandemic. However, workers are considered to face more difficult conditions than employers. Therefore, according to Said, the government should have acted more justly.
“Do not be beaten equally by all poor companies,” Said said in a written statement Tuesday (27/10/2020).
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He also compared the position of the current government with the position of the government in the era of the leadership of the third President of the Republic of Indonesia, B.J. Habibi. At the time, although Indonesia’s economic conditions were hit by the crisis, the government will continue to raise wages next year.
“The fact is that in 1998 there was still an increase in the minimum wage to maintain people’s purchasing power,” he said.
For example, at that time the minimum wage in DKI akakarta increased by about 16 percent from 1998 to 1999. Meanwhile, at the same time, economic growth was minus 17.49 percent.
“Also, the minimum wage from 1999 to 2000, the minimum wage still increased by about 23.8 percent, while economic growth in 1999 was minus 0.29 percent,” he said.
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Therefore, he believes that the reason of the government for not raising wages for labor due to minus economic growth is not correct.
On the other hand, he is concerned that if labor wages are not increased, people’s purchasing power will actually decrease. This situation can have a negative impact on the level of consumption, and thus potentially have a negative impact on the national economy.
In addition, he added, not all companies face difficulties due to the pandemic. Therefore, he demanded that the policy of increasing salaries be implemented proportionately.
Earlier, Labor Minister Ida Fawzia confirmed that there would be no increase in the minimum wage next year, with both the provincial minimum wage (UMP) and the regent / minimum wage for the city (OMK).
This is stated in Circular Letter No. M / 11 / HK.04 / X / 2020 regarding the setting of the minimum wage in 2021 during the coronavirus pandemic 2019 (Covid-19).
The reason for the government not to raise the minimum wage next year is that Indonesia’s economy is currently recovering. According to the government, the wage increase in 2021 will actually be a burden on the business world.