"The UMP is the minimum wage, the amount of which is determined using a formula that combines inflation plus an index, multiplied by economic growth in each province or district," Airlangga said at a press conference in Jakarta on Friday.
Airlangga made this statement in response to ongoing protests from workers regarding the increase in the UMP in a number of regions.
The government has also increased the alpha index in the UMP calculation formula to 0.5 to 0.9. This step, he said, has provided sufficient room for wage increases for workers.
Coordinating Minister Airlangga also explained that the current minimum wage is sufficient to serve as a benchmark to ensure workers receive income that meets their daily needs while also addressing price increases.
