Workers Demand 2023 Batam Minimum Wage of IDR 5.3 Million

Workers Demand 2023 Batam Minimum Wage of IDR 5.3 Million

Labor demonstration in Batam, rejecting an increase in labor wages based on PP 36 of 2021 concerning wages. (Photo: Margaretha/Batamnews)

Batam, Batamnews - Workers in Batam, Riau Islands, demonstrated again in front of the Batam Mayor's Office on Monday (14/11/2022). They rejected the increase in labor wages based on Peraturan Pemerintah or PP (PP- Government Regulation) 36 of 2021 concerning wages.

Chairman of the Batam City Branch Consulate of the Indonesian Metal Workers Union Federation (FSPMI), Yapet Ramon, said that labor wages have not increased for the last 3 years.

"It does not increase because the wage increase is calculated based on PP 36, a derivative of the Job Creation Law. Looking at the last 3 years, inflation was above 3.5% while the wage increase was not up to 1% or only 0.8%," Ramon told Batamnews. 

So that it can be interpreted that the balance of the purchasing ability of the workers is weak, and this has an impact on the development of regional economies where household consumption can be weak. 

Moreover, the increase in fuel oil (BBM) impacts the increase in transportation, food, and housing costs. 

Nationally, the demands for wage increases are: reject the minimum wage increase based on PP 36/2021, the 2023 minimum wage increase refers to inflation and economic growth, and the 2023 minimum wage increase is 13 percent. 

"The 13% increase is calculated from 6.5% inflation, 4.5% economic growth, and 2% alpha. Inflation and economic growth data Year on Year (YoY) from September 2021 to September 2022. Alpha is a prediction of the October to December 2022 period," he said. 

His office has also surveyed decent living needs (KHL) after the fuel increase following the Regulation of the Ministry of Manpower 18/2022. The total items surveyed reached 64 items in several markets in Batam. 

"The average value is IDR 5,076,000, this has not been added to the difference in paying wages for 2021 and 2022 of 286k, so the total is IDR 5.3 million," he said.

He also explained that PP 36/2021 is an implementing regulation of Law number 11 of 2020 concerning Job Creation which has been formally declared conditionally unconstitutional as the Constitutional Court's decision Number 91 / PUUXVIII / 2020 on November 25, 2021. 

"So that it is contrary to the 1945 Constitution of the Republic of Indonesia and Law 11/2020 jo PP 36/2022 is not binding and cannot be a reference as a legal basis in determining the minimum wage increase," he said.

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