Jakarta – Arsjad Rasjid, Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), hinted in a written statement on Thursday that he will seek judicial review of the Manpower Minister’s regulation No.18/2022, which governs the minimum wage increase, which is capped at 10% for 2023.
Rasjid believes that this regulation conflicts with Presidential Regulation No. 36/2021 on wages, which is the regulatory implementation of the contentious Job Creation Law. He contends that such a review is required to ensure investment stability, worker welfare, and business justice.
“To ensure that this policy is not counterproductive, KADIN, in collaboration with the Employers’ Association and every KADIN member corporation, is compelled to file for a review of Minister of Manpower Regulation No. 18/2022,” Rasjid wrote on Thursday, November 24.
He stated that legal action was required because legal certainty is critical for businesses. He asserted that business actors are generally in agreement that the national economy affected by the global economic downturn must be handled with caution.
“One of them is to keep people’s purchasing power stable, which is reflected in the increase in the minimum wage,” he explained.
Rasjid believes that the minimum wage rule should take into account businesses’ ability to respond to current economic conditions in order to avoid burdening business actors and disrupting the business climate further.
Source : en.tempo.co
