Page 195 - e-KLIPING KETENAGAKERJAAN 21 OKTOBER 2019

Title GOVT RAISES PROVINCIAL MINIMUM WAGE BY 8.51 PERCENT
Media Name tempo.co
Pub. Date 18 Oktober 2019
https://en.tempo.co/read/1261156/govt-raises-provincial-minimum-wage-b y-8-51-
Page/URL
percent
Media Type Pers Online
Sentiment Positive

Manpower Minister Hanif Dhakiri has inked a circular letter for all governors across
Indonesia regarding the increase in the minimum wage of provinces (UMP) and
regencies/cities (UMK) in 2020. The hike is set at 8.51 percent.

"The increase of UMP and UMK in 2020 has been adjusted to the national inflation
and economic growth by 8.51 percent," as quoted from the circular passed on
Tuesday, Oct. 15.

Referred to the Central Statistics Agency (BPS) dated October 2, 2019, the national
inflation rose by 3.39 percent, and the economic growth jumped by 5.12 percent.

The minister also demands governors to set the next year's minimum wage
following Government Regulation No. 78/2015 concerning wages, as well as the
provincial wages board.

Should the board's term of office has ended, Hanif orders governors to immediately
form a new one. The UMP 2020 must be tapped and announced by every governor
simultaneously on November 1, 2019, while the UMK on no longer than November
21, 2019.

"The new UMP and UMK will take effect on January 1, 2020," Hanif remarked on the
letter.

Meanwhile, regions with the minimum wage below the decent standard of living
(KHL) should adjust its UMP or UMK. Seven provinces that must regulate their UMP
in line with the KHL are Central Kalimantan, Gorontalo, West Sulawesi, East Nusa
Tenggara, West Papua, Maluku, and North Maluku.

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