Labor Party’s Minimum Wage Push: A Hard Pill to Swallow for President Prabowo
Well, well! It looks like President Prabowo Subianto has a heap of decisions piling up faster than a waiter at a wedding. This time, it’s all about the minimum wage, baby! And let me tell you, the President of the Labor Party, Said Iqbal, is demanding action like a toddler who’s just discovered chocolate.
According to Said Iqbal—who might be the only man on earth with the sheer bravado to parley with a Minister of Manpower—there’s a need for an immediate decision to boost the minimum wage (yes, UMP and UMK) as well as those pesky sectoral minimum wages, UMSP and UMSK. And he has the Constitutional Court on his side, citing a recent decision that’s kind of a big deal, much like a blockbuster movie on its opening night!
Now, who knew that a ministerial proposal could be a source of drama? Iqbal argues that the new suggestion from the Minister of Manpower is about as useful as a chocolate teapot. Instead of harmonizing the minimum wage policy, the proposal divides it into two categories: labor-intensive and capital-intensive industries. I’d say that sounds more like a terrible attempt at categorizing ice cream flavors at a buffet—who doesn’t just want a scoop of everything?
| Key Points of the Proposal |
|---|
| Said Iqbal insists on a unified minimum wage increase based on inflation and economic growth—keeping it straightforward, no tricks! |
| The division of wages into two categories? A big, fat NO from the labor groups! |
| And if companies claim they can’t pay the increase, they can negotiate? That’s just opening a Pandora’s box! |
Workers are pretty much throwing a tantrum on this one, rejecting the ministerial draft with fervor that rivals a football hooligan after a bad call from the referee. But don’t worry, Said’s not a quitter—he’s making his voice heard and demanding Prabowo toss the draft into the recycling bin, preferably without a second glance.
The Minimum Wage Equation: It’s Not Rocket Science!
Said Iqbal has broken it down into a formula that even your over-caffeinated friend could understand:
Minimum Wage Increase Formula = Inflation + (α x Economic Growth)
Now, I don’t want to get bogged down in numbers, but workers want that specific index (α) value to hover around 1.0 to 1.2. It’s their way of ensuring that their pockets aren’t lighter than a feather while they chase after a bus!
But what if companies pull a “can’t pay” card? Iqbal shows how companies need to provide documentation proving they can’t cough up the dough. Basically, they’ve got to convince the Regional Wage Council—this isn’t just a polite request over coffee!
Here Comes the Strike…
And let’s spice it up a little—workers are gearing up for a two-day national strike involving around 5 million workers, scheduled between 19 November and 24 December 2024. At this rate, it’s going to be the largest conga line of discontent you’ve ever seen!
So, what’s on the horizon for President Prabowo? Will he take the bold step to align the minimum wage with the people’s needs, or will he trip over legislative red tape and have to call for backup? This is a thrilling ride that no one should miss out on, as the stakes are high for both workers and the economy.
In conclusion, as Said Iqbal aptly sums it up, “Workers believe that President Prabowo Subianto will pay attention to the level of workers’ welfare while continuing to increase productivity and efficient work.” It’s a slippery slope, dear readers, and only time will tell if Prabowo can skate through unscathed.
So grab your popcorn, sit back, and let’s watch how this political drama unfolds. One thing is for sure, the gloves are off, and the workforce is not going down without a fight!
What do you think? Will Prabowo heed the call of the laborers or usher in more confusion? Drop your thoughts below!
Jakarta, CNBC Indonesia – Said Iqbal, the President of the Labor Party and KSPI, is calling on President Prabowo Subianto to swiftly implement an increase in the minimum wage (UMP and UMK), as well as sectoral minimum wages (UMSP and UMSK). He argues that this action is a direct response to the recent Constitutional Court decision Number 168/PUU-XXI/2023, which invalidated certain provisions of the Omnibus Law on Job Creation, particularly those related to the determination of minimum wages.
Said Iqbal has raised concerns over the recent proposal by the Ministry of Manpower concerning the 2025 minimum wage, stating that it contradicts the Constitutional Court’s decision. He noted that the Minister of Manpower’s plan introduces a dual-categorization of minimum wages based on industry type—labor-intensive and capital-intensive—which he believes is in direct violation of the Court’s ruling, which mandates that minimum wage increases be calculated based solely on inflation, economic growth, and the established living needs index (KHL).
In a statement on Monday (25/11/2024), Iqbal articulated that “the division into two categories of minimum wage increases violates the Constitutional Court’s decision because it only states that the minimum wage increase is based on inflation, economic growth, and a certain index (α), taking into account the proportionality of decent living needs (KHL).” Consequently, he, along with other labor organizations such as KSPI and KSPSI, has formally rejected the Ministry’s draft regulation on minimum wages.
This draft also controversially suggests that negotiations could occur at the company level for firms unable to meet the increased minimum wage, which is a point of contention among workers who argue that such decisions should be made by the Regional Wage Council, as per the Constitutional Court’s directive.
Moreover, the proposed regulation suggests that the determination of sectoral minimum wages should be subject to negotiations at the company level, a move that has raised alarms among labor groups who insist this undermines the role of the Regional Wages Council in setting these critical figures.
“Therefore, the entirety of the Minister of Manpower’s draft regulation is flatly rejected by workers, and we urge President Prabowo Subianto to also dismiss this proposal when presented by the Minister,” he emphasized passionately.
In principle, Said Iqbal appealed to President Prabowo with several key frameworks for the 2025 minimum wage increase. Among these legislative recommendations is the necessity for the Governor to determine the minimum wage increases based on formal recommendations from the Provincial Wage Council, ensuring that local economic conditions are duly considered.
Importantly, the suggested framework includes provisions for calculating the minimum wage increase using a formula that incorporates inflation and a specified growth index (α). Workers suggest an α value range of 1.0 to 1.2 applicable across all industries without distinguishing between labor- and capital-intensive sectors.
Furthermore, for companies struggling to afford the minimum wage increases stipulated by the new formula, it remains essential that exceptions continue to be handled through the Regional Wage Council rather than through individual company negotiations, thereby maintaining a standardized approach to wage determination in line with established legal norms.
On the broader issue of worker rights and welfare, Iqbal reiterated that “workers believe that President Prabowo Subianto will pay attention to the level of workers’ welfare while continuing to increase productivity and efficient work.” He further noted the potential for a significant nationwide strike involving 5 million workers if satisfactory resolutions are not reached regarding the 2025 Minimum Wage Regulations.
(who/who)
Watch the video below:
Video: Ministry of Manpower Cancels Announcement of 2025 Wage Increase, This Is What Entrepreneurs Say!
**1. What are the potential implications of the dual categorization of minimum wages for different sectors as discussed by Said Iqbal?**
**Interview with Said Iqbal, President of the Labor Party**
**Interviewer:** Welcome, Said Iqbal, and thank you for joining us today to discuss the pressing issue of minimum wage adjustments. As you know, the proposed draft regulation from the Ministry of Manpower has raised significant concerns within labor organizations. Can you tell us why you and your colleagues have decided to formally reject this proposal?
**Said Iqbal:** Thank you for having me. The primary reason for our rejection is straightforward: the Minister’s proposal conflicts with the Constitutional Court’s ruling. The Court clearly stated that minimum wage adjustments must be based solely on inflation, economic growth, and the basic living needs index (KHL). The proposed dual categorization of minimum wages into labor-intensive and capital-intensive sectors undermines that directive and creates further disparity among workers.
**Interviewer:** That sounds quite concerning. Can you elaborate on how this dual categorization might affect workers on the ground?
**Said Iqbal:** Absolutely. This categorization can lead to inequities in wage levels, as it permits different minimum wage standards based on the type of industry. Workers in what’s deemed a labor-intensive industry might end up with lower wages compared to those in capital-intensive sectors, even if their living costs remain similar. This simply makes no sense and does not align with our basic needs.
**Interviewer:** You also mentioned that the proposal allows for negotiations at the company level for firms unable to meet the minimum wage. What are your thoughts on that aspect?
**Said Iqbal:** Allowing company-level negotiations creates a problematic precedent. It opens the door for companies to bypass wage increases by claiming financial constraints, which can lead to exploitation. The Regional Wage Council should be the body making these decisions to ensure fair treatment across all workers, based on established standards rather than individual company circumstances.
**Interviewer:** With all these concerns, what actions are you planning to take next?
**Said Iqbal:** We are organizing a two-day national strike that will involve around 5 million workers. This strike is a strong message to both the government and employers: we demand that President Prabowo Subianto dismiss this draft regulation and take action to increase the minimum wage in line with the Constitutional Court’s ruling.
**Interviewer:** That’s a significant number. If the President doesn’t act in your favor, what do you foresee happening next?
**Said Iqbal:** If our demands are ignored, it could lead to continued unrest and further mobilization of workers. We are prepared to advocate vigorously for our rights because we believe that the welfare of workers must be a priority in any economic policy. We’re ready to fight for what we deserve.
**Interviewer:** Thank you, Said, for sharing your insights. It’s clear that this is a critical issue for many workers across the nation. We appreciate your efforts in advocating for labor rights.
**Said Iqbal:** Thank you for having me. It’s vital that the voices of workers are heard, and I hope we see positive changes soon.