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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Ady TD Achmad
Labor Strike. Photo by: RES.
In response to the ongoing controversy over the issuance of Government Regulation No. 78 of 2015on the Minimum Wage (2015 Regulation), Commission IX at the House of Representatives (House) has established a working committee (Panitia Kerja – “Panja”), which will be responsible for coming up with a proper solution to this complex problem.
This measure is being implemented primarily in response to the many complaints which have been received by the House from the country’s labor force regarding the 2015 Regulation. Indeed, a significant number of laborers have already opted to seek legal redress by petitioning for a judicial review of the 2015 Regulation.
Dede Yusuf Macan Effendi, the Head of Commission IX, asserted that the Panja will be soliciting input from various stakeholders over this issue, including the government, labor unions, and business associations, as well as relevant experts. It is hoped that the Panja will be able to come up with a proper solution which will ultimately settle the disquiet which has arisen following the effective enforcement of the 2015 Regulation.
“The Panja will then submit the results of their deliberations to the government in the form of a recommendation. The Panja could, for example, recommend that the government revise, repeal, or continue to implement the 2015 Regulation,” Mr. Effendi stated to assembled members of the press after attending an opinion hearing meeting, which was attended by Commission IX and representatives from the National Wage Council (Depenas), as well as by Labor Agencies from Jakarta, West Java, and Banten, on Tuesday, 16 February 2016.
According to Mr. Effendi, some parties are claiming that the 2015 Regulation will offer stability and legal certainty for businesses and investors. However, several topics remain open for further evaluation. One of these topics concerns the variable used for calculating any rise in the minimum wage, which is based on the rate of growth in the national economy. Critics of the policy claim that the use of this variable ignores the fact that economic growth can vary considerably across each region of the country.
The 2015 Regulation determines any annual rise in the minimum wage through a formula which is based on the rate of inflation and national economic growth. Mr. Effendi believes that the government drew up this new wage-calculation formula far too hastily, as it sought to safeguard the investment sector. This is also the main reason, claims Effendi, why the House has tasked the Panja with evaluating the 2015 Regulation, which it will be doing over a period of two legislative sessions.
Also commenting on this issue, Panja member Irma Suryani Chaniago asserted that the 2015 Regulation violated Article 88 and 89 of Law No. 13 of 2003 on Labor Affairs (Labor Law). According to Mrs. Chaniago, any determination of the minimum wage should be based on a consideration of decent living standards (kebutuhan hidup layak - KHL), a metric which already encompasses productivity and economic growth. Mrs. Chaniago also believes that the 2015 Regulation will end up emasculating the Wage Council’s role as regards minimum-wage recommendations.
“The issuance of the 2015 Regulation was indeed mandated under the Labor Law, however the provisions which the government ended up incorporating into the 2015 Regulation should not contradict the Labor Law,” asserted Mrs. Chaniago.
Irianto Simbolon, a Depenas representative and also an expert at the Ministry of Employment, expressed a different opinion from that asserted by Mrs. Chaniago. According to Mr. Simbolon, the 2015 Regulation does not in fact contradict the Labor Law, as the formula used to determine the 2015 minimum wage already encompasses a consideration of KHL within its inflation and national-economic-growth variables. Moreover, according to Mr. Simbolon, the formula set out in the 2015 Regulation was created with the express purpose in mind that it should be the simplest way of determining any rise in the minimum wage.
“In fact, the formula used by the 2015 Regulation results in a minimum-wage hike greater than that of any calculation made using the KHL as a variable,” asserted Mr. Simbolon.
Mr. Simbolon also revealed that Depenas was currently gathering input from various parties regarding the deliberation of a Draft Minister of Employment Regulation (Draft Ministerial Regulation), which is mandated by the 2015 Regulation. This Draft Ministerial Regulation will regulate holiday allowances (tunjangan hari raya - THR), and service fees, as well as the structure and gradations of different wage schemes. Mr. Simbolon is also hopeful that the Panja will be able to offer constructive input as regards deliberations into the Draft Ministerial Regulation.
This measure is being implemented primarily in response to the many complaints which have been received by the House from the country’s labor force regarding the 2015 Regulation. Indeed, a significant number of laborers have already opted to seek legal redress by petitioning for a judicial review of the 2015 Regulation.
Dede Yusuf Macan Effendi, the Head of Commission IX, asserted that the Panja will be soliciting input from various stakeholders over this issue, including the government, labor unions, and business associations, as well as relevant experts. It is hoped that the Panja will be able to come up with a proper solution which will ultimately settle the disquiet which has arisen following the effective enforcement of the 2015 Regulation.
“The Panja will then submit the results of their deliberations to the government in the form of a recommendation. The Panja could, for example, recommend that the government revise, repeal, or continue to implement the 2015 Regulation,” Mr. Effendi stated to assembled members of the press after attending an opinion hearing meeting, which was attended by Commission IX and representatives from the National Wage Council (Depenas), as well as by Labor Agencies from Jakarta, West Java, and Banten, on Tuesday, 16 February 2016.
According to Mr. Effendi, some parties are claiming that the 2015 Regulation will offer stability and legal certainty for businesses and investors. However, several topics remain open for further evaluation. One of these topics concerns the variable used for calculating any rise in the minimum wage, which is based on the rate of growth in the national economy. Critics of the policy claim that the use of this variable ignores the fact that economic growth can vary considerably across each region of the country.
The 2015 Regulation determines any annual rise in the minimum wage through a formula which is based on the rate of inflation and national economic growth. Mr. Effendi believes that the government drew up this new wage-calculation formula far too hastily, as it sought to safeguard the investment sector. This is also the main reason, claims Effendi, why the House has tasked the Panja with evaluating the 2015 Regulation, which it will be doing over a period of two legislative sessions.
Also commenting on this issue, Panja member Irma Suryani Chaniago asserted that the 2015 Regulation violated Article 88 and 89 of Law No. 13 of 2003 on Labor Affairs (Labor Law). According to Mrs. Chaniago, any determination of the minimum wage should be based on a consideration of decent living standards (kebutuhan hidup layak - KHL), a metric which already encompasses productivity and economic growth. Mrs. Chaniago also believes that the 2015 Regulation will end up emasculating the Wage Council’s role as regards minimum-wage recommendations.
“The issuance of the 2015 Regulation was indeed mandated under the Labor Law, however the provisions which the government ended up incorporating into the 2015 Regulation should not contradict the Labor Law,” asserted Mrs. Chaniago.
Irianto Simbolon, a Depenas representative and also an expert at the Ministry of Employment, expressed a different opinion from that asserted by Mrs. Chaniago. According to Mr. Simbolon, the 2015 Regulation does not in fact contradict the Labor Law, as the formula used to determine the 2015 minimum wage already encompasses a consideration of KHL within its inflation and national-economic-growth variables. Moreover, according to Mr. Simbolon, the formula set out in the 2015 Regulation was created with the express purpose in mind that it should be the simplest way of determining any rise in the minimum wage.
“In fact, the formula used by the 2015 Regulation results in a minimum-wage hike greater than that of any calculation made using the KHL as a variable,” asserted Mr. Simbolon.
Mr. Simbolon also revealed that Depenas was currently gathering input from various parties regarding the deliberation of a Draft Minister of Employment Regulation (Draft Ministerial Regulation), which is mandated by the 2015 Regulation. This Draft Ministerial Regulation will regulate holiday allowances (tunjangan hari raya - THR), and service fees, as well as the structure and gradations of different wage schemes. Mr. Simbolon is also hopeful that the Panja will be able to offer constructive input as regards deliberations into the Draft Ministerial Regulation.
(rfs/sp)
Marcell Sihombing, Ady TD Achmad
Labor Strike. Photo by: RES.
In response to the ongoing controversy over the issuance of Government Regulation No. 78 of 2015on the Minimum Wage (2015 Regulation), Commission IX at the House of Representatives (House) has established a working committee (Panitia Kerja – “Panja”), which will be responsible for coming up with a proper solution to this complex problem.
This measure is being implemented primarily in response to the many complaints which have been received by the House from the country’s labor force regarding the 2015 Regulation. Indeed, a significant number of laborers have already opted to seek legal redress by petitioning for a judicial review of the 2015 Regulation.
Dede Yusuf Macan Effendi, the Head of Commission IX, asserted that the Panja will be soliciting input from various stakeholders over this issue, including the government, labor unions, and business associations, as well as relevant experts. It is hoped that the Panja will be able to come up with a proper solution which will ultimately settle the disquiet which has arisen following the effective enforcement of the 2015 Regulation.
“The Panja will then submit the results of their deliberations to the government in the form of a recommendation. The Panja could, for example, recommend that the government revise, repeal, or continue to implement the 2015 Regulation,” Mr. Effendi stated to assembled members of the press after attending an opinion hearing meeting, which was attended by Commission IX and representatives from the National Wage Council (Depenas), as well as by Labor Agencies from Jakarta, West Java, and Banten, on Tuesday, 16 February 2016.
According to Mr. Effendi, some parties are claiming that the 2015 Regulation will offer stability and legal certainty for businesses and investors. However, several topics remain open for further evaluation. One of these topics concerns the variable used for calculating any rise in the minimum wage, which is based on the rate of growth in the national economy. Critics of the policy claim that the use of this variable ignores the fact that economic growth can vary considerably across each region of the country.
The 2015 Regulation determines any annual rise in the minimum wage through a formula which is based on the rate of inflation and national economic growth. Mr. Effendi believes that the government drew up this new wage-calculation formula far too hastily, as it sought to safeguard the investment sector. This is also the main reason, claims Effendi, why the House has tasked the Panja with evaluating the 2015 Regulation, which it will be doing over a period of two legislative sessions.
Also commenting on this issue, Panja member Irma Suryani Chaniago asserted that the 2015 Regulation violated Article 88 and 89 of Law No. 13 of 2003 on Labor Affairs (Labor Law). According to Mrs. Chaniago, any determination of the minimum wage should be based on a consideration of decent living standards (kebutuhan hidup layak - KHL), a metric which already encompasses productivity and economic growth. Mrs. Chaniago also believes that the 2015 Regulation will end up emasculating the Wage Council’s role as regards minimum-wage recommendations.
“The issuance of the 2015 Regulation was indeed mandated under the Labor Law, however the provisions which the government ended up incorporating into the 2015 Regulation should not contradict the Labor Law,” asserted Mrs. Chaniago.
Irianto Simbolon, a Depenas representative and also an expert at the Ministry of Employment, expressed a different opinion from that asserted by Mrs. Chaniago. According to Mr. Simbolon, the 2015 Regulation does not in fact contradict the Labor Law, as the formula used to determine the 2015 minimum wage already encompasses a consideration of KHL within its inflation and national-economic-growth variables. Moreover, according to Mr. Simbolon, the formula set out in the 2015 Regulation was created with the express purpose in mind that it should be the simplest way of determining any rise in the minimum wage.
“In fact, the formula used by the 2015 Regulation results in a minimum-wage hike greater than that of any calculation made using the KHL as a variable,” asserted Mr. Simbolon.
Mr. Simbolon also revealed that Depenas was currently gathering input from various parties regarding the deliberation of a Draft Minister of Employment Regulation (Draft Ministerial Regulation), which is mandated by the 2015 Regulation. This Draft Ministerial Regulation will regulate holiday allowances (tunjangan hari raya - THR), and service fees, as well as the structure and gradations of different wage schemes. Mr. Simbolon is also hopeful that the Panja will be able to offer constructive input as regards deliberations into the Draft Ministerial Regulation.
This measure is being implemented primarily in response to the many complaints which have been received by the House from the country’s labor force regarding the 2015 Regulation. Indeed, a significant number of laborers have already opted to seek legal redress by petitioning for a judicial review of the 2015 Regulation.
Dede Yusuf Macan Effendi, the Head of Commission IX, asserted that the Panja will be soliciting input from various stakeholders over this issue, including the government, labor unions, and business associations, as well as relevant experts. It is hoped that the Panja will be able to come up with a proper solution which will ultimately settle the disquiet which has arisen following the effective enforcement of the 2015 Regulation.
“The Panja will then submit the results of their deliberations to the government in the form of a recommendation. The Panja could, for example, recommend that the government revise, repeal, or continue to implement the 2015 Regulation,” Mr. Effendi stated to assembled members of the press after attending an opinion hearing meeting, which was attended by Commission IX and representatives from the National Wage Council (Depenas), as well as by Labor Agencies from Jakarta, West Java, and Banten, on Tuesday, 16 February 2016.
According to Mr. Effendi, some parties are claiming that the 2015 Regulation will offer stability and legal certainty for businesses and investors. However, several topics remain open for further evaluation. One of these topics concerns the variable used for calculating any rise in the minimum wage, which is based on the rate of growth in the national economy. Critics of the policy claim that the use of this variable ignores the fact that economic growth can vary considerably across each region of the country.
The 2015 Regulation determines any annual rise in the minimum wage through a formula which is based on the rate of inflation and national economic growth. Mr. Effendi believes that the government drew up this new wage-calculation formula far too hastily, as it sought to safeguard the investment sector. This is also the main reason, claims Effendi, why the House has tasked the Panja with evaluating the 2015 Regulation, which it will be doing over a period of two legislative sessions.
Also commenting on this issue, Panja member Irma Suryani Chaniago asserted that the 2015 Regulation violated Article 88 and 89 of Law No. 13 of 2003 on Labor Affairs (Labor Law). According to Mrs. Chaniago, any determination of the minimum wage should be based on a consideration of decent living standards (kebutuhan hidup layak - KHL), a metric which already encompasses productivity and economic growth. Mrs. Chaniago also believes that the 2015 Regulation will end up emasculating the Wage Council’s role as regards minimum-wage recommendations.
“The issuance of the 2015 Regulation was indeed mandated under the Labor Law, however the provisions which the government ended up incorporating into the 2015 Regulation should not contradict the Labor Law,” asserted Mrs. Chaniago.
Irianto Simbolon, a Depenas representative and also an expert at the Ministry of Employment, expressed a different opinion from that asserted by Mrs. Chaniago. According to Mr. Simbolon, the 2015 Regulation does not in fact contradict the Labor Law, as the formula used to determine the 2015 minimum wage already encompasses a consideration of KHL within its inflation and national-economic-growth variables. Moreover, according to Mr. Simbolon, the formula set out in the 2015 Regulation was created with the express purpose in mind that it should be the simplest way of determining any rise in the minimum wage.
“In fact, the formula used by the 2015 Regulation results in a minimum-wage hike greater than that of any calculation made using the KHL as a variable,” asserted Mr. Simbolon.
Mr. Simbolon also revealed that Depenas was currently gathering input from various parties regarding the deliberation of a Draft Minister of Employment Regulation (Draft Ministerial Regulation), which is mandated by the 2015 Regulation. This Draft Ministerial Regulation will regulate holiday allowances (tunjangan hari raya - THR), and service fees, as well as the structure and gradations of different wage schemes. Mr. Simbolon is also hopeful that the Panja will be able to offer constructive input as regards deliberations into the Draft Ministerial Regulation.
(rfs/sp)