No lawsuit against Baswedan’s provincial minimum wage hike decision

The Chapter of the Indonesian Chamber of Commerce and Industry (Kadin) of Jakarta denied having filed a lawsuit with the State Administrative Court (PUTN) against Jakarta Governor Anies Baswedan’s decision to raise provincial minimum wages for 2022.

The denial suggests that the chamber is at odds with the Association of Indonesian Businessmen (Apindo) that is one of its members. Apindo filed a lawsuit with the PUTN against the provincial minimum wages on January 13, 2022.

“The chamber did not (file a lawsuit) The chamber is a parent organization. It is (Apindo) that filed it. At that time, we advised (Apindo) that the most important aspect is how to make the business climate in Jakarta conducive,” Chief of the chamber’s Jakarta chapter Diana Dewi said here on Wednesday.

Dewi noted that the chamber supports Jakarta Governor’s Decision No. 1517 of 2021 on the provincial minimum wages for 2022.

The governor signed the decision on December 16, 2021, that raises the provincial minimum wages for 2022 by 5.1 percent, or Rp225,667.

In fact, Apindo does not need to file the lawsuit against the revised increase in provincial minimum wages.

The gubernatorial decision still requires two derivative rules to implement it, with one being the decision of the head of the Manpower, Transmigration and Energy Office, which stipulates that companies or entrepreneurs that cannot afford to comply with the gubernatorial decision can follow the previous gubernatorial decision No. 1395 of 2021.

“In my opinion, the decision of the chief of the Manpower Office is a derivative rule. Do they file a lawsuit against the content of the gubernatorial decision or the regulation (of the head of the manpower office)?” she questioned.

Source: Antara News