Basuki will Follow Government Regulation Determining UMP

Jakarta Governor, Basuki 'Ahok' T Purnama admitted that he would follow the Government Regulation No. 78/2015 on Remuneration to set the amount of the Provincial Minimum Wage (UMP).

UMP is not ratified yet. As what I said that we want to follow government regulation

Earlier, discussion of UMP amount was delayed. This is because entrepreneurs want to firstly review a study regarding the new regulation passed. "UMP is not ratified yet. As what I said that we want to follow government regulation," he stated, at City Hall Jakarta, Wednesday (10/28).

It regulates the formulation of remuneration calculating inflation and economic growth. By so, the Wage Agency which serves to set minimum wage remains providing input to the government. Its determination is always attracting debate between three parties, namely government, employer, and worker. However, with such formula, will provide certainty in the business world.

Determination of 2016 UMP Postponed

The new wage formula set by the government is the same as UMP's same year with UMP's current year coupled with (UMP's current year (inflation plus economic growth). For instance, UMP in Jakarta with inflation and economic growth has 5 percent, where that means UMP this year will be Rp 2.7 million, coupled with Rp 2.7 million, multiplied by 10 percent. It means Rp 2.7 million coupled with Rp 270,000 which means Rp 2.97 million.

Meanwhile, Jakarta Wage Agency has set the KHL this year by Rp 2.98 million. Previously, Jakarta Provincial Government in the calculation of the UMP, Jakarta government uses KHL formula coupled with inflation and economic growth in the next year.