Manpower Ministry Rejects City's Proposed Formula

Jakarta Provincial Government already had sent a letter about determination of Jakarta Provincial Minimum Wage (UMP) to Ministry of Manpower and Transmigration. The letter mentions, to determine its nominal, it can use the formula that is based on the value of the Basic Cost of Living (KHL).

All must be based on Government Regulation. We've asked them to use our formula, but it was rejected

Jakarta Governor, Basuki T Purnama disclosed, such request was rejected. Because UMP determination should be based on Government Regulation (PP) No. 78/2015 on Wage.

"All must be based on Government Regulation. We've asked them to use our formula, but it was rejected," disclosed Basuki, during a meeting with Wage Board at City Hall, Monday (10/24).

City to Determine UMP on November 1

To determine 2017 UMP, his party would follow on the existing regulation. But, in future, there would be proposal of KHL formula after he managed to suppress a variety of needs, ranging from food, housing, transportation, health, and can create business opportunities.

"We have to obey the law, no negotiation, we must follow on such regulation. We've tried also thus all parties not to be harmed, either worker or employer," he uttered.

According to calculation through Government Regulation, the nominal has issued Rp 3,351,040 or increased 8.11 percent. It uses this year's UMP formula plus with national economic growth and national inflation.

While from worker, they relied on KHL that has been surveyed. They survey seven traditional market, with KHL nominal by Rp 3.491,607.

Such nominal then plus with economic growth and inflation. So, the results obtained is Rp 3,831,690 or increased 23 percent.