Acting Governor Bey Machmudin has established the minimum city/regency wages (UMK) for 2024 in West Java, Indonesia. The UMK determination is rooted in Government Regulation (PP) No. 51 of 2023 concerning Wages, which calculates the UMK by considering three variables: inflation, economic growth, and a specific index within the alpha factor ranging from 0.10 to 0.30.
Calculating the UMK
West Java's year-on-year inflation from September 2022 to September 2023 was 2.35%. The economic growth, another vital determinant, is measured by comparing the economic growth of each city/regency for the four quarters of the previous year against the economic growth from two years prior.
Review of UMK Proposals
On November 28, 2023, the West Java Wage Council conducted a Plenary Meeting to review 27 UMK value proposals from the mayors/regents. After the review, 13 cities/regencies recommended values in accordance with the minimum wage adjustment formula, while 14 did not, based on PP 51 of 2023.
UMK Increase for 2024
The average wage increase for 2024 is set at Rp78.909, with an average percentage increase of 2.50% and an average Alpha value used in the calculation of the increase being 0.22. The highest UMK in West Java for the next year is in Bekasi City at Rp5,343,430, while the lowest is in Banjar City at Rp2,070,192.
Meanwhile, workers from various regions began a national strike on Thursday, demanding a 15 percent increase in the UMK. The strike, expressing disappointment with the Acting Governor's decision, took place in industrial areas of the EJIP, MM 2100 and Delta Silikon in Bekasi regency, West Java. The protestors attempted to close the Pasteur Toll gate, demanding the rejection of certain laws and decrees, as well as an increase in the UMK for 2024.