Indonesia considers minimum wage increase in 2022

In an official statement, Puan Maharani, Speaker of the Indonesian House of Representatives, said, “We encourage that the increase must be able to fulfill the necessities of the people. Many of the workers have experienced wage cuts or layoffs due to the pandemic.”

Last year, the government had advised regional governments not to increase the wage rate for 2021, citing the decline in the national economy. However, Maharani said a wage raise for 2022 would boost the purchasing power of workers, and thus improve their welfare.

She said she was heartened that the Ministry of Manpower has indicated that it is planning to increase the minimum wage rate next year, although the amount has not been fixed yet.

Maharani also urged the public to understand that the raise may not meet the expectations of all parties, saying, “… I expect that there will be a compromise, thus the amount of the increase can accommodate the needs of workers in accordance with the company’s capabilities and national economic conditions”.

In addition, the house speaker also asked the government to involve the workers in discussions regarding the plan.

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Maharani also expressed the hope that workers would accept the new rate even if the increase falls short of their expectations saying, “We should remember that we are currently still recovering from the impact of COVID-19. Thus, the plan to raise the minimum wage rate next year is better than the absence of an increase this year,” according to Antara News.