TEMPO.CO, Jakarta - The Ministry of Manpower has confirmed that the calculation of the Provincial Minimum Wage (UMP) for 2025 will adhere to Government Regulation (PP) Number 51 of 2023.

Indah Anggoro Putri, Director General of Industrial Relations and Social Security, emphasized the continued use of PP 51/2023. “To this day, PP 51/2023 remains in effect,” she said at the Senayan Parliament Complex, Jakarta, on Wednesday, October 30, 2024.

She explained that the ministry plans to utilize an index adjustment scheme, recommended by the National Wage Council (DPNAS), to determine the 2025 minimum wage. “The National Wage Council's alpha recommendation has been communicated to the Manpower Minister,” Indah explained.

However, a divergence in formula proposals has emerged. She mentioned that the government favors the formula outlined in PP 51/2023, while employers and workers advocate for an alternative approach. 

“There's a split recommendation from the National Wage Council, with differing views from employers and workers. The National Wage Council consists of government, employer, and worker representatives,” Indah noted.

She outlined that the primary point of contention lies in the "alpha" factor, which influences the wage calculation. Workers are pushing for an alpha value between 0.3 and 1 percent. “This has not been decided yet because the National Wage Council has never before produced split recommendations between employers and workers,” Indah stated.

She added that consensus meetings are planned to determine a specific index adjustment formula or alpha value. “We'll definitely find a solution. Remember, we'll engage in consensus meetings. Before reaching a consensus, we'll strive for dialogue and understanding,” Indah assured.

Indah also confirmed that governors are expected to issue circular letters regarding the 2025 minimum wage determination by November 21, 2024. Similarly, District Minimum Wages (UMK) are slated to be determined by November 30, 2024.

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