Regarding the 2024 UMP, West Java APINDO says PP 51/2023 will encourage investment in West Java
Warta Ekonomi, Bandung - Acting (Pj) Governor of West Java, Bey Machmudin, has stipulated Governor Decree No. 561/Kep/768-Kesra/2023 concerning the Minimum Wage for West Java Province in 2024.
Responding to the issuance of the Governor's Decree, APINDO West Java appreciated the Acting Governor of West Java for adhering to legal certainty, namely PP No. 51 of 2023 concerning Wages in determining the amount of the West Java Provincial Minimum Wage (UMP) for 2024.
With regard to workers' wishes regarding demonstrations or work strikes, West Java APINDO considers this to be workers' rights and is guaranteed by Law no. 13 of 2003 concerning Employment.
"However, it would be better to prioritize social dialogue and deliberation to reach a consensus, both bipartitely between employers and workers and tripartitely between employers, government and workers, so that there is no longer a need to lose productivity due to work strikes or demonstrations," explained Chairman of West Java APINDO, Ning Wahyu Astutik, to journalists in Bandung, Tuesday (21/11/2023) evening.
Ning revealed that it is known that currently West Java is intensively carrying out promotions to attract investment, such as in the REBANA area.
"Of course we hope that the investment climate will remain well maintained," he stressed.
When asked about Labor's statement that before 2015 wage increases could reach 2 digits, he said that the types of investment then and now are different.
In the past, there were still many labor-intensive investments that could absorb a lot of labor. Meanwhile, investment is now increasing in value, but it is dominated by capital-intensive ones and prioritization of automation, so that workers who lose jobs in labor-intensive ones and do not have adequate qualifications in capital-intensive ones will find it difficult to get work.
Ning reiterated that currently, West Java still needs labor-intensive investment. And with West Java dominated by capital-intensive investment, many factories have closed and many factories have relocated to other provinces.
"So PP No. 51 of 2023 is the best for now. So with this legal certainty it is hoped that it can trigger an increase in investment in West Java, especially labor-intensive investment, because we know that of the total national unemployment, West Java contributes 25%, " he explained.
After the West Java Governor's Decree regarding the determination of the 2024 UMP, there will then be a discussion about the Regency/City Minimum Wage (UMK).
APINDO West Java really hopes that the discussion on UMK can run smoothly and in accordance with applicable regulations, namely PP No. 51 of 2023, and remembering that this is a political year.
"I also hope that all parties do not politicize this wage determination process,".
(SOURCE)
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