The Jakarta Provincial Government recently held a Wage Council session to determine the value of the Minimum Provincial Wage (UMP) for Jakarta in 2024. The session, which lasted for approximately 4.5 hours on a Friday from 2:00 PM to 6:30 PM WIB, did not immediately reach an agreement. There were three different recommendations regarding the proposed increase in Jakarta's UMP for 2024.

Representing the employers, Nurjaman from the Wage Council of the Indonesian Employers Association (Apindo) stated that Apindo and Kadin recommended an increase in wages in accordance with Government Regulation (PP) 51/2023 on wages. "The amount we propose refers to PP 51/2023 with an alpha formula of 0.2. So, the proposed Minimum Provincial Wage by us employers is Rp5,043,000," said Nurjaman at the Jakarta City Hall last Friday.

Meanwhile, the proposal from the workers' union differed from PP 51/2023, namely by referring to a 15% increase. The Wage Council from the Workers' Union, Dedi Hartono, recommended setting alpha at around 8.15%, resulting in a total wage increase of 15%. "The 8.15% figure is the result of the impact of sectoral wage differences and serves as the basis for considering a 15% wage increase," explained Dedi.

From the government and expert perspective, as conveyed by Jaenal Abidin Simanjuntak from the UI Faculty of Economics, the increase in Jakarta's UMP in 2024 still adheres to PP 51/2023 with an alpha formulation of 0.3 or 30%. "I propose an increase of 0.3 or 30% because the contribution of workers is already fair. Other considerations include the median wage in Jakarta, which is much higher than the current UMP, as well as the wage comparison between Jakarta and Karawang and Bekasi," said Jaenal.

"Additionally, if we look at the UMP increase of 4.61%, while the proposed alpha of 0.3 is only 3.88%, the expert's proposal is 0.3. The expert's proposal is the same as the government's," he concluded.