APINDO Visits Tegal Regency DPRD, Urges Support for a Conducive Investment Climate
Friday, 31 October 2025
Slawi – The Tegal Regency Executive Board (DPK) of the Indonesian Employers Association (APINDO) held an audience with Commission II of the Tegal Regency Regional House of Representatives (DPRD) on Thursday, October 30, 2025, to discuss efforts to maintain a favorable investment climate in the region.
The meeting was led by Kiswanto, Chairperson of APINDO Tegal Regency, along with several board members. Meanwhile, Commission II was chaired by Sugono, Deputy Speaker of the Tegal Regency DPRD from the Indonesian Democratic Party of Struggle (PDI-P).
Kiswanto stated that the visit aimed to provide balanced information to the DPRD following a previous meeting between the council and a labor union. According to him, while labor groups had requested significant increases in the Regency Minimum Wage (UMK), such aspirations needed to be aligned with efforts to sustain a healthy business and investment climate in Tegal.
“Regarding the Regency Sectoral Minimum Wage (UMSK), APINDO agrees in principle—provided there are clear regulations. However, at present, no companies in Tegal apply a sectoral wage system,” Kiswanto explained.
He added that the UMSK is intended for workers with specialized skills and higher occupational risks. Yet, despite the inclusion of UMSK provisions in Minister of Manpower Regulation (Permenaker) No. 16 of 2024 concerning Wage Councils, there are still no derivative regulations to implement it.
“If the regulations are in place, we are ready to comply and implement UMSK,” he emphasized.
Meanwhile, M. Alfian Adipradana, Chair of Commission II, accompanied by member Saeful Bahri, expressed agreement with APINDO’s call for a conducive business climate. They also encouraged the local government to facilitate smoother licensing processes, even though some permits fall under central government authority.
“We urge the relevant agencies to help accelerate licensing processes, as long as the required documents are complete,” Alfian said.
On the issue of UMSK, Commission II emphasized the need for thorough assessment, noting that sectoral wages are generally higher than UMK and could burden businesses, potentially prompting them to relocate to areas without UMSK implementation.
“In Central Java, only two regions Semarang and Jepara have adopted UMSK,” he noted.
He further explained that before implementing UMSK, a Wage Council must be formed, consisting of representatives from workers, employers, and local government. This council would be responsible for determining sectoral wages for workers in high-risk or specialized roles.
“In essence, we want a balance where workers receive fair wages while businesses can still operate profitably,” Alfian concluded.
Source: pantura.suaramerdeka.com
