Batam tripartite meeting proposes 5% wage rise<\/p>\n
Fadli
\nThe Jakarta Post
\nBatam<\/p>\n
A tripartite meeting attended by businessmen, labor and
\ngovernment representatives has agreed to propose a five percent,
\nor Rp 25,000, increase in the minimum wage for the industrial
\nisland of Batam in Riau province, officials said on Sunday.<\/p>\n
The proposal was approved by Batam Mayor Nyat Kadir and has
\nbeen presented to the Riau governor for endorsement or rejection.<\/p>\n
Under the agreement, Batam's regional wage will likely
\nincrease from Rp 510,000 to Rp 535,000 per month. This would be
\nthe highest minimum wage so far when compared to other regions.<\/p>\n
Nasir Harun, chairman of Batam's Indonesian Employers'
\nAssociation (Apindo), said the decision to raise the minimum wage
\nby 5 percent had taken several considerations into account,
\nincluding preventing investors from leaving the island, which
\ncould spark mass dismissals.<\/p>\n
\"We want Batam to become more attractive to international
\nbusiness, so the minimum wage needs to be determined based upon
\nmature consideration,\" he explained.<\/p>\n
Arifin, head of the manpower and transmigration office in
\nBatam, said the wage increase was relatively low compared to
\nthose of previous years.<\/p>\n
\"We are waiting for a gubernatorial decree approving the
\nminimum wage. There may be some revisions,\" he added.<\/p>\n
Netty Herawaty, who heads Batam's All-Indonesia Workers' Union
\nFederation (FSPSI), said that in principle his organization had
\nactually not wanted to propose any increase in the minimum wage
\non the island because it could raise the prices of essential
\ncommodities.<\/p>\n
\"We asked the employers during the tripartite meeting to
\nestablish a Batam Employers and Workers' Cooperative (KPPB) in
\norder to pay more attention to the plight of workers,\" he said.<\/p>\n
But, the Indonesian Prosperity Trade Union (SBSI) rejected the
\nfive percent increase decided on by the tripartite meeting, at
\nwhich it was not represented.<\/p>\n
SBSI leader Bambang Yulianto said the Rp 25,000 rise was not
\nin line with the demands of workers for wages that were
\nsufficient to cover estimated monthly living expenses of Rp
\n780,000 per person in Batam.<\/p>\n
The chairman of the Batam Authority's board, Ismeth Abdullah,
\ntold The Jakarta Post that if the wage rise was not decided upon
\nwisely, it could reduce the island's competitive edge in
\nattracting investment compared to similar industrial zones in
\nAsia.<\/p>\n
The determination should also consider the financial
\ncapabilities of employers, he said without elaborating.<\/p>",
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