Latest Policy on Minimum Wage
In November 2023, the Indonesian government introduced a significant change in determining minimum wages through Government Regulation (PP) Number 51 of 2023. This regulation incorporates new factors, including an index with a limit of between 0.01 and 0.03, determined by the Provincial Wage Council or City/District Council. The aim is to ensure that minimum wages better reflect economic conditions and the needs of workers.
BPS Data and Labor Expenditure Survey
Data from the Central Bureau of Statistics (BPS) provides insights into Jakarta's cost of living and wage levels. However, there is a notable discrepancy between official BPS data and the findings of surveys conducted by labor organizations. For instance, the BPS reports the actual living expenditure of the Indonesian population in 2023 to be around Rp990,833 per month, while a survey by the Decent Living Committee shows a much higher figure of Rp3,428,186.69 per capita per month for laborers. This discrepancy underscores the need for a more comprehensive understanding of workers' living costs.
Labor Conditions in Jakarta and Tangerang: Workers' Voices
Workers in both Jakarta and Tangerang are grappling with the rising cost of living. Interviews with workers in both cities reveal a shared concern: the minimum wage is not keeping pace with expenses.
Rina, a worker from Tangerang, shared a detailed breakdown of her expenses: "The cheapest boarding house costs around Rp 800,000. Meals per day Rp 50,000 x 30 days = Rp 1,500,000. Transportation Rp 20,000 x 30 days = Rp 600,000. Total: Rp 2,900,000." While she acknowledges that the current minimum wage might be enough for a single person, she emphasizes that "if I have a family, the dependents of living expenses increase, it will not be enough."
This sentiment is echoed by Balkis, an accounting staff member in Tangerang, who states that the current minimum wage is "insufficient because the needs of life continue to increase." She hopes for a "more prosperous" future where wages reflect a "decent livelihood for humanity."
Farhan, another worker from Tangerang, points out a critical issue: "The word 'minimum' in UMR or UMP is just a display, even though many people are still given salaries below the minimum with qualified skills and high education."
In Jakarta, workers express similar concerns. Mirna, an account manager, highlights that while the UMP increase is intended to improve welfare, "this positive impact cannot be felt significantly" due to the simultaneous rise in the cost of living. Romi, a sales manager, and Dina, a project manager, both believe that the current UMP needs to be improved to meet Jakarta's living costs.
Ira, a project cost controller in Jakarta, provides a poignant perspective: "The unevenly distributed privileges for the poor are one reason this discrepancy is happening." She calls for the government to "evaluate the actual living conditions of the people of Jakarta," considering factors such as high demand, high prices, and taxation.
