Firms seek delay on minimum wage<\/p>\n
JAKARTA (JP): A total of 82 companies nationwide have applied
\nto the government to be exempted from the new minimum wage levels
\nwhich came into force on April 1, Minister of Manpower Abdul
\nLatief said yesterday.<\/p>\n
Latief told a hearing of the Commission VI of the House of
\nRepresentatives that three applications have been processed by
\nhis office and they have been given nine months to comply.<\/p>\n
The government on April 1 hiked the minimum wage levels across
\nthe nation by five to 35 percent.<\/p>\n
The current daily minimum wage for Jakarta is Rp 4,600
\n($2.07), Rp 3,700 for East Java and Rp 4,600 in West Java. The
\nhighest minimum wage level is Rp 4,750 for Irian Jaya while the
\nlowest is Rp 2,850 in Yogyakarta.<\/p>\n
The majority of the 157,819 companies registered with the
\nMinistry of Manpower complied immediately with the hikes but 82
\napplied for exemption for various reasons, mostly financial
\ndifficulties.<\/p>\n
Latief said that the Ministry of Manpower is handling
\napplications from 30 companies which employ more than 100
\nworkers. The regional offices of the ministry is handling the
\nother 52.<\/p>\n
Of the 82 applications, 53 of them are in East Java, 10 in
\nSouth Sumatra, four in Bengkulu, two in Jakarta, two in Central
\nJava, six in West Java, two in Bali and two in Ambon. Of the 82
\ncompanies, 62 come from the trade sector, 13 from agriculture and
\nplantation and seven from manufacturing.<\/p>\n
Latief said 59 companies have ignored the minimum wage
\nregulations. Their cases are now being processed for possible
\nprosecution, he added.<\/p>\n
If found guilty by the court, those companies, or the
\nemployers, could be liable to fines between Rp 25,000 and Rp
\n300,000, and or, between six months and one year imprisonment.
\n(03)<\/p>",
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