Indonesian economy to not experience recession in 2023

Padang, The Gulf Observer: The Indonesian Employers’ Association (Apindo) believes that in 2023, the Indonesian economy will survive and not experience a recession, disparate to the concerns expressed by some parties.

“If there is no recession, and what needs to be paid attention to is growth that is evenly distributed and enjoyed by as many people as possible,” Apindo Chairman Hariyadi B. Sukamdani stated here, on Tuesday.

Sukamdani made the statement at the Apindo VII Provincial Conference of West Sumatra themed “Strengthening the Industrial World Business in Facing the Global Economic Recession.”

According to the chairman, if the economy is growing, but on the other hand, there are still citizens, who need to be subsidized, then it means that the growth is not evenly distributed.

“We want to realize even growth. This is Apindo’s concern,” he stated.

Hence, one of the issues that Apindo should pay close attention to is the determination of the Provincial Minimum Wage (UMP).

Sukamdani noted that if the setting of the minimum wage exceeds the ability of the employer, then this will also be a problem, as employment will shrink.

“Even though we are currently recovering after the pandemic by reopening jobs,” Sukamdani said.

Hence, he emphasized that the minimum wage should be set on the basis of on-field data and not just a political decision.

He also drew attention to misunderstandings often arising in comprehending the provincial minimum wage that was sometimes looked down upon.

“The minimum wage is given to new workers, who have never worked before, and the working period is under one year. If it is more, then it is no longer the minimum wage, and the levels are different,” he stated.

In line with this, Chairperson of West Sumatra Apindo Muzakir Aziz also highlighted the minimum wage that he considered unfair for employers and for workers.

“It is not possible that the UMP of one region is the same as another. Do not equate the Padang minimum wage with Mentawai and others,” Aziz remarked.

According to Aziz, conditions in one area are not the same, so UMP cannot be equated as it is closely related to inflation.