The law eliminates the phrase “Batal demi Hukum” (cancelation in the name of the law) in the provisions of the Manpower Law. This law reduced it from 32 to 25 months’ wages. The amount of severance pays for workers who have experienced termination of employment (PHK).This means that all types of work can be outsourced, both supporting and primary work. Those are cleaning services, catering, security, drivers, and oil support services. As well as removing 5 types of work that can be outsourced. This is because the “Undang-Undang Cipta Kerja” abolishes Articles 64 and 65 of the Manpower Law. No restrictions on the types of work that can be outsourced.The abolition of the working relationship time limit through a certain time work agreement (PKWT) has the opportunity to cause the status of workers to continue to be PKWT forever Abolition of the contractual working relationship time limit.The phrase “can” in this provision is considered very detrimental to workers because the determination of the UMK is not mandatory. 13 of 2003 concerning Manpower states that the Governor can set the Regency/City minimum wage (UMK) with certain conditions. The Wage policy shows uncertainty in setting low wagesįor example, the “Undang-Undang Cipta Kerja” Article 88C paragraph (1) of Law No.What is the problem of “Undang-Undang Cipta Kerja?”Ī Number of Substances of the “Undang- Undang Cipta Kerja” are considered to be a disadvantage for workers. If a district/city has not been able to propose the minimum wage rate, the governor will use the UMP as a reference for the provision of wages in that district/city. Meanwhile, the Level II UMR was changed to the Regency/City Minimum Wage (UMK). 226 of 2000, the Level I UMR was changed to the Provincial Minimum Wage (UMP). Through the Decree of the Minister of Manpower and Transmigration No. Some people often refer to the UMR rather than using the UMP and UMK. Even though in practice it is no longer used, the term UMR is still often used for mentioning the minimum wage. The term UMR was then replaced with UMP and UMK. This standard wage is proposed by the regent or mayor to the governor. The latter is the minimum wage standard applicable at the district/city level. The former is determined by the governor at the provincial level. Previously, the minimum wage is commonly known as “UMR”.
The increase in the minimum wage is discussed jointly between the government, employers, and workers or better known as tripartite. The minimum wage that employers pay to these workers is generally set once a year. The amount depends on each region which generally adjusts to the prices of basic needs, inflation rates, living standards, and other variables. This will affect the number of wages that workers receive from employers. In determining wages in Indonesia, there are several schemes that could be applied. Furthermore, it also depends on the condition of the national economy. Even so, the determination of the minimum wage considers the capabilities of the company. Wage-setting aims to create a fair wage system for all parties to achieve the welfare of workers and laborers.
Meanwhile, the protest in Jakarta will be centered at the City Hall of DKI. The action will be held on 10 November in each regional legislative office (DPRD). The Confederation of Indonesian Trade Union (KSPI) will conduct waves of protest simultaneously in 26 provinces in Indonesia. Workers protest in demand of increasing the minimum wage and omnimbus law.
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