Makjrengg, Bisa Gak Ya UMP Mengejar Inflasi?

Summary

Indonesia's 2024 Minimum Wage (UMP) adjustments have been finalized, showing varying increases across provinces, with Jakarta leading in nominal figures. However, some areas, like Gorontalo, saw minimal increases in percentage terms. While the national inflation forecast for 2024 is 3.2%, experts warn that the average UMP rise of just 3.84% may not keep pace with inflation, especially in food sectors, potentially eroding workers' purchasing power. Calls for a more substantial UMP increase reflect concerns that workers may struggle in the face of rising living costs.

Takeaways

• 😀 DKI Jakarta has the highest UMP for 2024 at IDR 5.67 million.
• 😀 Gorontalo has the lowest UMP increase in nominal value, rising by only IDR 5,750.
• 😀 Central Sulawesi has the highest UMP increase in percentage, with an 8.73% rise.
• 😀 Maluku Utara has the highest UMP increase in rupiah value, with an increase of IDR 221,646.
• 😀 Several provinces have yet to announce their 2024 UMP decisions, including Maluku and Central Kalimantan.
• 😀 The Indonesian inflation forecast for 2024 is 3.2%, up from 2.84% in 2023.
• 😀 Bank Indonesia predicts the national economy will grow between 4.5% and 5.3% in 2023, with a midpoint of 5.01%.
• 😀 The main contributors to inflation in 2023 were food, beverages, and tobacco, with a 1.39% contribution.
• 😀 The average increase in UMP across 33 provinces for 2024 is 3.84%, below the ideal 10% increase needed to combat inflation.
• 😀 Experts warn that the moderate UMP increases in 2024 may be insufficient to counteract inflation, particularly in food prices.

Q & A

What is the UMP 2024, and how does it relate to inflation?

The UMP (Upah Minimum Provinsi or Provincial Minimum Wage) 2024 refers to the minimum wage set by each Indonesian province for the year 2024. It is important because its growth is compared to inflation rates to assess whether the increase in wages is sufficient to keep up with the rising cost of living, especially food prices, which can erode purchasing power.

Which province in Indonesia has the highest UMP for 2024?

The province with the highest UMP for 2024 is DKI Jakarta, with a nominal UMP of IDR 5,673,810.

What is the UMP of Central Java in 2024, and how does it compare to other provinces?

In 2024, Central Java has the lowest UMP, at IDR 2,036,947. This is significantly lower than DKI Jakarta’s UMP, which is more than double.

Which province has the lowest UMP increase in 2024?

Gorontalo has the lowest increase in UMP in 2024, with an increase of only IDR 5,750, resulting in a total UMP of IDR 3,251,000.

Which province has the highest percentage increase in UMP for 2024?

Sulawesi Tengah has the highest percentage increase in UMP for 2024, with an increase of 8.73%, although the nominal increase is lower than some other provinces.

What does the forecast for inflation in 2024 suggest about economic conditions?

The forecast for inflation in 2024 is 3.2%, indicating that economic challenges, especially global economic pressures, are expected to persist. However, inflation is still within the target range set by Bank Indonesia, which is between 3% ± 1%.

How did food prices affect inflation in 2023?

In 2023, food and beverage prices, including tobacco, had the largest impact on inflation. In October 2023, food and beverage prices contributed 1.39% to the annual inflation rate.

What is the average UMP increase across Indonesian provinces in 2024?

The average UMP increase across the 33 provinces that have announced their figures is 3.84%.

Why do some experts believe that a UMP increase of 3.84% is not enough?

Experts, like Bima Yudisira from the Center of Economic and Law Studies (CELIOS), argue that a UMP increase of 3.84% is insufficient to keep pace with inflation, especially given the ongoing pressures from food price inflation. They suggest that an ideal UMP increase should be around 10%.

What is the potential impact on workers' purchasing power in 2024?

If the UMP increase does not surpass inflation rates, workers' purchasing power could be negatively impacted. With food inflation expected to persist, workers may struggle to keep up with the rising costs of basic goods and services, making it harder to meet their financial needs.