Coordinating Economic Minister Darmin Nasution (Antara)

Coordinating Economic Minister Darmin Nasution says the government is set to issue its fourth economic policy package, which will be focused more on labor issues in a bid to spur growth, on Thursday.

'€œIt will be delivered this week. Insya Allah [God willing], it will happen on Thursday,'€ Darmin said as quoted by tempo.co at the Presidential Palace in Jakarta on Monday.

He refused to give details of the package, but said that the government had been working on a draft regulation (RPP) on wages. "We will discuss it in the next one or two days,'€ he said.

Meanwhile, kontan.co.id reports that the coming policy package will focus on the formula for setting the minimum wage. It is hoped that the package will be good enough to create certainty around the mechanism for formulating minimum wage.

Currently, each local government has their own formula to decide on the provincial minimum wage (UMR), which usually ends in industrial disputes at local levels.

It is said the new formula will be used as the main reference, but will not be the sole formula, as local governments will be still allowed to continue some local principles.

The government released its third economic policy package, which was aimed at creating a more investor-friendly business environment and providing better protection for businesspeople, last Wednesday.

This means the government has only one week to prepare the fourth package, assuming that the package will be issued on Thursday. (ags/ebf)

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