Business Update: 2023 UMP Prediction List in 34 Provinces, IMF Highlights Recession Threat

TEMPO.CO, Jakarta – The latest economic and business news until Sunday afternoon, November 20 2022, starting with predictions of the provincial minimum wage or UMP that will apply in 34 provinces starting in 2023.

Next, there is news about the story of a Tokopedia employee who escaped layoffs and the CEO of Ruangguru guaranteeing that the severance pay of laid-off workers will be paid in full. Then there was news about the IMF highlighting the threat of recession and the value of the budget allocated to build infrastructure in Bali for the G20 Summit reaching Rp 800 billion.

The five news stories accessed the most by readers of the Economy and Business channel. The following is a summary of the five trending news.

1. Official Minimum Wage Increases 10 Percent per 2023, Here’s the UMP Estimation in 34 Provinces

The government through the Minister of Manpower Ida Fauziyah has signed the Minister of Manpower Regulation (Pemnaker) Number 18 of 2022 concerning the determination of the 2023 minimum wage.

That way, Government Regulation Number 36 of 2021 concerning wages will no longer be a reference for determining the minimum wage because it has not included the component of the impact of rising inflation. Through a YouTube video uploaded on Saturday, 19 November 2022, the Minister of Manpower Ida explained that the increase in the provincial minimum wage (UMP) and district and city minimum wages (UMK) will take effect on January 1, 2023.

“The setting of the minimum wage through the PP formula No. 36 of 2021 cannot accommodate the impact of the socio-economic conditions of the community because the minimum wage is not balanced with the rate of increase in the prices of goods,” said Ida as quoted from her statement on YouTube, Saturday, November 19, 2022.

Read more about the minimum wage here.