Wednesday, 04 June, 2008 | 14:36 WIB
TEMPO Interactive, Jakarta: The Indonesian Employers Association (Apindo) has stated that entrepreneurs have eventually followed the government's suggestion about helping reduce the burden on employees after the fuel price rises by increasing their meal and transportation allowances.
“The allowances will be realized this month (June),” Manpower and Transmigration Minister Erman Soeparno told Tempo in Jakarta, on Monday (3/6).
Erman acknowledged that he had met with entrepreneurs to confirm the raises.
PT. Indofood Sukses Makmur Tbk. will raise the allowances by 25 percent for transport and 20 percent for meals, while PT Djarum will raise both by 15 percent.
Apindo Chairman Djimanto said that the association kept encouraging entrepreneurs to raise allowances.
“The rises will be between 15 and 25 percent for the formal sector,” he said.
However, Djimanto confirmed that the rises were not obligatory for every company.
This policy was advised in order to maintain stable relationships between companies and their employees.
“This is so that employees do not need to ask for salary rises which would place a burden on companies,” he said.
Djimanto added that shoe, garment, and food industries will give 20 percent rise in allowance while it was impossible to predict what the informal sector with smaller scale businesses would do.
“They might give a 10 percent rise at the maximum,” he said.
Previously, the Indonesian Prosperous Labor Union (SBSI) suggested wage rises of between 35 and 40 percent before the fuel price increases.
SBSI Chairman Rekson Silaban said that this was calculated based on increasing transport allowances by 15 percent and meal allowances by 20 percent, without taking inflation into account.
Rekson suggested that industries which profited from the fuel price increase should raise wages by 50 percent.
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