The annual increase of UMP was done when the economic condition is still not bright right. Jokowi regime has not been able to find the right formula to excite the market. Economic growth of around 5 percent obviously adds to the burden of the business world when wage increases are periodically fixed.
An enlarged wage component in the middle of lethargy can also reduce the attractiveness of labor-intensive investments. In fact, the labor-intensive investment that is the key to an increasingly unemployment solution. Thus, it is quite worrying if the government heightens the UMP increase when the economy weakens.
However, the interests of the workers must also be considered. They are also depressed with economic melancholy. Overview of wage increases can be a cure. However, on a large scale, it can actually sacrifice among the workers themselves. That is, when the pressure of unbearable wage costs for industrialists, there can be a reduction in labor. No loud demos can solve the problem.
The situation of the flow of labor across the country also increasingly suppresses the power of our labor competition. Especially when the labor is a condition of investment. Want to invest origin of the workers themselves. The reason may not be about our unskilled wage or labor. But, the atmosphere is too democratic in freedom of association of our workers can make the investor nervous. Better to bring yourself controllable workers, no demos, and work, work, work.
It needs a serious government effort to make our labor world quieter. Do not let any excessive noise to accompany the UMP determination yesterday. Keep in mind: the economy is not bright yet and the choice of work is not much. Meanwhile, foreign workers can easily replace our workers. Competition of labor increasingly fierce in the days now.