Indonesia has decided to raise Jakarta’s provincial minimum wage (Upah Minimum Provinsi) starting in 2022 as its economic growth is predicted to reach 4.3% at the same time.
The decision was made for the benefit of the community, especially employees from various departments who were targeted by the impact of the Covid-19 outbreak, according to Deputy Governor Ahmad Riza Patria.
He stated that the financial burden on workers during a pandemic can be reduced by increasing UMP, although it will not satisfy everyone, adding that “it is for the common benefit.”
According to Governor Anies Baswedan, Jarkata’s UMP will be increased by 5.1% to Rp4,641,854 (US$ 325) next year, up from 0.85% to Rp4,453,935 (US$ 312) before.
“We hope that the purchasing power of people and employees will not fall as a result of this UMP hike.”