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MANPOWER MINISTER IDA FAUZIYAH UNDER FIRE FOR MAINTAINING MINIMUM
WAGE FOR 2021
Labor unions have lambasted Manpower Minister Ida Fauziyah for leaving the minimum wage
unchanged for 2021, accusing her of siding with businesses over workers.

The workers called on President Joko "Jokowi" Widodo on Friday to instruct Ida to revoke a
newly issued circular letter that announced there would be no increase to the minimum wage.
They called the policy unfair, given that at least 11 business sectors were not affected by the
COVID-19 pandemic, such as energy, electronics and pharmaceuticals.

"Ida Fauziyah is not the manpower minister but the minister of Apindo [the Indonesian Employers
Association] or the businessmen's minister," Riden Hatam Aziz, secretary-general of the
Indonesian Metal Workers Union (FSPMI), said in a virtual presser on Friday.

Indonesian Workers Union Association (ASPEK) president Mirah Sumirat voiced similar concerns.

"We are very angry; the government really doesn't care about us," she said.

Entrepreneurs association predicts zero increase in Jakarta's minimum wage next year
Confederation of Indonesian Workers Union (KSPI) chairman Said Iqbal said the policy could not
be applied equally to all business sectors, even though there were sectors severely impacted by
the pandemic such as tourism, hotels and airlines.

"Even in 1998 [Asian financial crisis] there was an increase in the minimum wage to maintain
people's purchasing power," he said.

Ida issued a circular on Monday, telling local administrations to maintain the 2020 provincial
minimum wage (UMP) or the district or city minimum wage (UMK) for 2021.

The National Awakening Party politician argued that the decision had been made after consulting
the National Wage Council (Depenas). She claimed that the council had agreed on the unchanged
minimum wage to protect both employers and workers amid the economic recovery from COVID-
19.

"We asked for the 2020 minimum wage to be maintained for 2021. This is a middle ground that
must be decided by the government under a difficult situation," said Ida as quoted by
kompas.com, adding that the final decision would lie in the hands of regional leaders.

However, Depenas deputy chairman for labor, Sunardi, said that even though he had been
invited to the meeting, the government's decision followed the suggestion proposed by business
representatives.

"The employers suggested that the 2012 minimum wage stay the same as 2020; that's their
suggestion, [.] but the workers gave their suggestions as well. Why does the government only
accommodate businesses?" Sunardi said.

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