The Acting Governor of North Sumatra (Sumut), Hassanudin, has set the 2024 Provincial Minimum Wage (UMP) at Rp2,809,915.
This figure represents an increase of Rp99,422, or 3.67%, compared to the 2023 UMP of Rp2,710,493.
The indicators for determining the UMP include fluctuating economic growth due to global geopolitics, inflation, and the welfare of Sumut workers, calculated based on the formula in Government Regulation No. 51/2023. The recommendations and suggestions of the Sumut Provincial Wage Council also contributed to this decision.
“This is not a trivial matter; a careful approach involving various parties is needed to reach the right decision, and companies must implement this wage structure,” said Hassanudin during a Coordination Meeting on UMP Determination in Medan, as reported on his official website on Monday (20/11/2023).
To ensure that this wage structure is implemented by all companies, Hassanudin stated that his office will form a monitoring team. He requested that the regencies/municipalities immediately determine the minimum district/city wage (UMK) in accordance with the conditions and regulations of their respective regions.
Hassanudin also ensured that the Sumut Provincial Government, along with the Regional Inflation Control Team (TPID) and other stakeholders, will strive to maintain economic growth and control inflation so that basic necessities remain affordable.
He stated that Sumut's economic growth in the third quarter was 4.94%, equal to national growth. Meanwhile, inflation was 2.15% (year-on-year/yoy) in September 2023.
"I also suggest that workers join cooperatives, so that they can easily access government programs such as food operations, training, and others," said Hassanudin.