2020 DI Yogyakarta Municipal Minimum Wages

The Government of the Daerah Istimewa Yogyakarta (Special Region of Yogyakarta) Province has set an increase in the Regency / City Minimum Wage (UMK) of the Yogyakarta Special Region in 2020 through the Governor’s Decree No. DIY. 257 / Kep / 2019.

The following is the amount of municipal minimum wage in the Daerah Istimewa Yogyakarta:

  1. The City of Yogyakarta: IDR 2,004,000/month (US$ 134)
  2. Sleman Regency: IDR 1,846,000/month (US$ 127)
  3. Bantul Regency: IDR 1,790,500/month (US$ 123)
  4. Kulon Progo Regency: IDR 1,750,500/month (US$ 121)
  5. Gunungkidul Regency: IDR 1,705,000/month (US$ 118)

SK UMK DIY 2020

2020 DKI Jakarta Provincial Minimum Wage

The Provincial Government of DKI Jakarta sets the provincial minimum wage (UMP) for DKI Jakarta 2020 at IDR 4,267,349 (US$ 294) through the Governor Regulation No. 121 of 2019. This value increased by around IDR 300,000 compare to the previous provincial minimum wage Rp. 3,940,973 in 2019. The provincial minimum wage starts to apply in January 2020.

SK UMP DKI 2020

2020 Banten Provincial and Municipal Minimum Wages

Banten Province stipulates the 2020 Provincial Minimum Wage (Upah Minimum Provinsi/UMP) of IRD 2,460,996.54  per month (US$170) in the Decree of the Governor of Banten Number 561/ Kep.305-Huk/2019. The amount of the UMP is in accordance with the increase in the UMP determined by the Ministry of Manpower which amounted to 8.51%. The Governor of Banten also stipulates the 2020 Municipal Minimum Wage (Upah Minimum Kabupaten/Kota or UMK). Based on the attachment of the Banten Governor’s Decree Number: 561/Kep.320-Huk/2019 dated November 19, 2019, the UMK of 8 Regencies/ Cities of Banten are as follow:

1. Serang Regency IDR 4,152,887.55 (US$ 286.41)

2. City of Cilegon IDR 4,246,081.42 (US$ 292.83)

3. Tangerang  Selatan City IDR 4,168,268.62 (US$ 287.47)

4. Pandeglang Regency IDR 2,758,909.00 (US$ 190.27)

5. Lebak Regency IDR 2,710,654.00 (US$ 186.94)

6. Serang  City IDR 3,773,940.00 (US$ 260.27)

7. Tangerang Regency IDR 4,168,268.62 (US$ 287.47)

8. Tangerang City IDR 4,119,029.92 (US$ 284.47)

2020 Jawa Barat Provincial and Municipal Minimum Wages Issue

On 1 November 2019, the Governor of Jawa Barat (West Java) issued Decision Letter SK Gubernur Nomor 561/Kep.1046-Yanbangsos/2018 stipulating the 2020 Provincial Minimum Wage (Upah Minimum Provinsi/UMP)  of Jawa Barat province amount of  IDR 1,810,351.36 per month (US$ 125). The calculation of the 2020 UMP is based on national inflation and national economic growth (Gross Domestic Product growth) data as per the Indonesian Central Statistics Agency (BPS RI). As reported, the national inflation rate is 3.39% and GDP growth is 5.12% making the total increment rate in 2020 to 8.51%.

In theory, UMP is used as the floor wage refer by District/City Wage Council when setting UMK. However, as it has been accustomed that municipalities in Jawa Barat issue or recommend the issuance of district/city minimum wage (Upah Minimum Kabupaten/Kota or UMK), the lowest wage floor for the next year UMK is the current year UMK. Thus, in Jawa Barat case UMP is applicable in district/city where UMK is not set by the respective Wage Council.

Once Wage Council sets next year minimum wage, the head of municipality (either Mayor or Regent) would provide recommendation to Governor to be confirmed. Generally, Governor will issue either Governor Regulation or Governor Decision. This is due to Act No. 12 of 2011 concerning Formation Statutory Regulations, Provincial Regulations and Regency/City Regulations are classified and identified in the Indonesia legislative hierarchy. So that the legal force of a Decree or Governor Regulation such as Decision or Regulation of UMK is binding.

This year, however, the Jawa Barat Governor stipulate the 2020 UMK in a Circular Letter (Surat Edaran/SE). Circular Letter in Indonesia is conceptualized as merely clarifying or giving instructions on how to carry out certain things that are considered important and urgent that do not yet exist or the rules as primary source of positive law in Indonesia remains unclear. Despite of this, in substance Circular Lettera should not oppose superior laws or regulations. If there is a conflict between the Circular Letters and Law & Regulations, the superior Laws and Regulations take precedence.

Circular Letters are only policy rules from Administrative officials, such as Minister or Governors, instead of legal products. It is only played a role of internal instruction and recommendations. Thus, there is no legal consequence for not complying with Circular Letters. In other words, the legal consequences the 2020 UMP likely take precedence over the 2020 UMK.

As reference, same as the UMP, the 2020 increment of district/city minimum wage in Jawa Barat follows the set formula (national inflation rate + GDP growth). The specific amount of each district/city could be found in the attachment below.

SE UMK JaBar 2020

 

News Flash 1/11/2019: 2020 Provincial Minimum Wage Increment Rate

The Ministry of Manpower (Kemnaker) decided to raise the Provincial Minimum Wage (UMP) in 2020 by 8.51 percent in accordance with the Circular Letter (SE) of the Minister of Manpower Number BM/308/ HI.01.00/X/2019 dated October 15, 2019 concerning Submission of National Data on Inflation and Gross Domestic Product Growth in 2019. In the circular also mentioned, the figure of 8.51 percent is based on the Central Statistics Agency data on national inflation and national economic growth in 2019.

Looking at the consistency of the provincial minimum wage increment in the last two years, it can be expected that all provinces in Indonesia will follow the Circular.

SE Menaker No BM_308_ HI.01.00_X_2019