Minimum Wage Decision Should Protect Workers and Support Business Continuity
Reported by Fakhrizal Fakhri | Translated by
Commission B member of the Jakarta Council (DPRD), M. Taufik Zoelkifli (MTZ), emphasized the need for a balanced determination of the Provincial Minimum Wage (UMP) that protects workers while supporting business continuity.
"...we need to look at this in a balanced way,"
MTZ made this statement in response to renewed demands for a UMP increase from both workers and employers.
“As usual, workers will propose a significant increase. But from the perspective of the DPRD and the government, we need to look at this in a balanced way. If the UMP rises too much, could it potentially disrupt the economy? For example, companies might close or fail to survive,” he said on Saturday (11/22).
Workers Earning Rp 6.2 Million Can Ride the MRT, LRT, and Transjakarta for FreeMTZ stressed the need to ensure employers are ready to bear the increased labor costs. According to him, without the readiness of employers, a UMP increase could negatively impact the business climate and job availability.
He mentioned that UMP determination cannot only consider workers' needs, even though living expenses continue to rise every year.
“If UMP is raised fully according to workers' needs, we also have to ensure the economy keeps running and companies can still operate despite the higher labor costs,” he explained.
Furthermore, MTZ called for transparency from employers regarding their company conditions so that UMP policies can be implemented fairly.
“We want to know if it's true that rising labor costs will shake up companies or not,” he stated.
