LEGAL POLITICS REGARDING MINIMUM WAGE IN INDONESIA FROM THE PERSPECTIVE OF THE WELFARE STATE

Abstract

The legal politics regarding minimum wage for laborers/workers in Indonesia is deemed important in bringing welfare to laborers/workers, which represents the objective of the state. To set the minimum wage for 2023, the regulation concerning the minimum wage, which is previously set forth as a government regulation, has been replaced by the Regulation of Manpower Minister, and this change may spark conflicts. Departing from this issue, this research aims to analyze the legal effects of the shift of the policy governing minimum wage from Government Regulation to Ministerial Regulation and the position of the authority of the Governor in setting minimum wage following the promulgation of the Regulation of Manpower Minister. With normative juridical methods and statutory and conceptual approaches to study the concept of the welfare state, this research reveals that, according to the welfare state and statutory theories, the shifting regulation from Government Regulation to Ministerial Regulation contravenes the legislative principle, the lex inferior derogate lex superior because, in the hierarchy of the legislation in Indonesia, the Ministerial Regulation is positioned under Government Regulation. The Governor’s Decree representing all the governors in Indonesia regarding Provincial Minimum Wage and/or Minimum Wage in Regency/Municipality in 2023 promulgated according to the Regulation of Manpower Minister Number 18 of 2022 remains effective and binding to all employers and laborers/workers as long as it is not reviewed or revoked by the Court. That is, the authority to set the minimum wage held by the Governor seems to set a strategic position to bring welfare to the people in regional areas. However, the pay raise is only restricted to not more than 10%.

Keywords

• legal politics
• minimum wage
• government regulation
• ministerial regulation
• welfare state