Entrepreneurs are calling for the new UMP rules to be rescinded to prevent layoffs

JAKARTAKOMPAS. com – Employers have asked the government to cancel the regulation of the Minister of Labor (Permenaker) number 18 of 2022 regarding the setting of the minimum wage for 2023. The aim is to minimize the storm of layoffs (PHK) next year.

“The most important thing, to reduce the risk of layoffs is to cancel Permenaker Number 18/2022, that’s for sure,” said the president of the Indonesian Employers Association (Apindus) Hariyadi Sukamdani in Indef Seminar, Monday (5/12/2022).

Hopefully the fixing formula UMP extension 2023 again uses Government Regulation (PP) number 36 of 2021 related to wages.

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Hariyadi explained that the business world was faced with various economic challenges, ranging from rising global inflation, shrinking liquidity and rising interest rates, to the potential of a global debt crisis, to the potential for stagflation.

On the other hand, the business world also faces the challenges of China’s economic slowdown due to the country’s prolonged lockdown policy. This is because China is one of Indonesia’s major trading partners.

Read also: Entrepreneurs are aware of the impact of the Chinese economic slowdown on Indonesia next year

China’s economic growth slowed in Q2 2022 to 0.4% (YoY/YoY), which is also the lowest growth since China’s economic contraction in Q1 2020 during the Covid pandemic -19.

China’s economic slowdown is expected to continue well into 2023 as there is no certainty when the lockdown will end due to the country’s government’s zero Covid-19 policy. This condition will certainly affect Indonesia’s exports to China, especially for commodities.

“The blockade of China continues to this day. It is a bit sad to see how in a very tense political situation in China, it impacts all of us, even the world is affected by it,” said Hariyadi.

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He added, entrepreneurs basically performed tremendous efficiency during the Covid-19 pandemic in 2020-2021. So, faced with the current situation, business players admit that they have to make efforts, especially to survive.

“During the pandemic of 2020-2021, the company made tremendous efforts to improve efficiency. ‘we maximized,’ he said.

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