Minimum Wage Regulations Adjusted

Local newswires, including Tempo are reporting that Manpower Minister, Ida Fauziyah has lauded the adjustment of the 2023 Provincial Minimum Wage (UMP) and said that the minimum wage regulation issued by her has succeeded in accommodating workers’ and employers’ interests.

“The stipulation (of the 2023 UMP) is one of our supports for maintaining the purchasing power of employees and encouraging (national) economic growth to advance,” she said in a statement issued on Tuesday.

She invited all parties to comply with the governors’ decision on the 2023 UMP and asked them to strengthen bipartite dialogue so that the UMP can be implemented properly.

So far, 33-governors have set the 2023 UMP in their respective regions, according to the Manpower Minister’s Regulation (Permenaker) Number 18 of 2022 concerning the determination of the 2023 minimum wage.

Fauziyah said that her ministry is waiting for other governors to determine the UMP soon since it will take effect from January 1, 2023.

According to data on UMP reported to the Manpower Ministry, West Sumatra province has recorded the highest increase in UMP. The province’s UMP has been raised 9.15-percent to IDR 2.7-million in 2023 from IDR 2.5-million in 2022.

Meanwhile, the lowest increase has been reported in North Maluku province, where the UMP has been raised 4-percent to IDR 2.98-million in 2023 from IDR 2.87-million in 2022.

Fauziyah noted that the adjustment of the 2023 UMP based on Permenaker Number 18 of 2022 has succeeded in providing a middle way for employers and workers; as can be seen from the average increase in the UMP of 7.50-percent.

“Thus, the purpose of the issuance of the Permenaker, namely as a middle way for all stakeholders involved in setting the minimum wage, has truly been achieved,” she remarked.

In addition, she emphasized that the imposition of the minimum wage only applies to workers with one year of service or less.

Meanwhile, the Jakarta provincial government is planning to increase its 2023 UMP to IDR 4.9-million from IDR 4.6-million in 2022.

Source: Tempo

Latest Article
Indonesia, China Discuss Economic Cooperation
President Jokowi received an honorary visit from Wang Yi, the Minister of Foreign Affairs of the People’s...
President Meets Tony Blair, Discusses Energy Investment and Accelerating Digital Transformation
In a release published on the website of The President of The Republic of Indonesia, President Jokowi...
Kominfo: Microsoft to Invest in Indonesia
Usman Kansong, the Director General of Communication and Public Information at the Communication and...
USTDA Advances Smart City Solutions for Nusantara
A press release published by the U.S. Trade and Development Agency (USTDA) on Wednesday (17/4/24,) announced...
BI Expected to Raise Interest Rates as Rupiah Weakens
According to reporting from Jakarta Globe, Bank Indonesia (BI) is anticipated to increase its benchmark...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.