Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government will soon form the Task Force for the Termination of Employment following the 6.5 percent increase in the 2025 national minimum wage.
"The government will form a task force related to termination of employment," he confirmed on the sidelines of the 2024 National Leadership Meeting of the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta on Sunday.
The plan to form the task force is a response from the government to the potential termination of employment by companies against their workers following the increase in the minimum wage.
However, Hartarto did not provide further details about when the task force will be formed, including the parties that will be involved in it. Nevertheless, he emphasized that the government continues to make efforts to push economic growth and reduce poverty.
Earlier, President Prabowo Subianto announced the average national minimum wage will be increased by 6.5 percent in 2025, based on the results of a limited meeting with relevant parties on Friday (November 29).
"We have decided to increase the average national minimum wage in 2025 by 6.5 percent," he said at the Presidential Office in Jakarta.
According to him, the increase is slightly higher than the 6 percent increase proposed by the Minister of Manpower, Yassierli.
The decision was taken after a limited meeting held to discuss the minimum wage as a social safety net for workers, especially those who have worked for less than 12 months.
The president explained that the final decision was taken after having in-depth discussions, including with leaders of labor unions.
He also emphasized that the increase is aimed at improving workers' purchasing power while still maintaining business competitiveness.
