Saturday , January 23 2021

The Minister for Workforce said that the RI Minimum Wage Value is Not Proportionate to Low Worker Productivity



JAKARTA, KOMPAS.com – Workforce Minister (Menaker) Ida Fauziyah said that based on a survey conducted on business actors in Indonesia, the results showed that the majority of respondents felt that the minimum wage value set was not commensurate with employee-generated productivity. .

This is because the productivity of Indonesian workers is currently considered low due to a deficit meter which is sufficient.

According to ILO data, growth rate output the annual rate of Indonesian workers is still low, even below the average for lower middle income countries.

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“The productivity level of our employees is also lower than our rival countries like Vietnam,” Ida said via an online Kompas Talk webinar, on Saturday (28/11/2020).

Data from the Central Statistics Agency (BPS) shows that in August 2020 there were around 138 million workforce, including 128 million people in work and 9.7 million unemployed with an open unemployment rate (TPT) reaching 7.07 percent .

Admittedly, there has been a significant increase in unemployment and TPT due to the impact of the pandemic.

According to BPS calculations, 29.12 million people of working age have been affected by a pandemic.

This, for him, will add to the burden on the labor sector, apart from the additional new workforce of 2-2.5 million entering the labor market each year.

“The data also shows that we have challenges in terms of competence and productivity. The large percentage of employees with junior and lower secondary school education led to many employees still receiving meter or low competency, ”Ida said.

“While there is some fresh air for the future when we look at the profile of working 16-30 year olds where more than 60 per cent are already educated in secondary and higher schools,” he continued.

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Ida added that Indonesia will reach the peak of the demographic bonus in the period 2020-2030.

In that time, Indonesia’s population structure will be mostly filled with productive 20-39 year olds.

According to Ida, in the next decade Indonesia’s decision will be to take advantage of the big opportunities from the demographic bonus.

“I think all of these things are challenges for all of us in taking advantage of the demographic bonus,” Ida said.


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