Govt set to increase minimum wages<\/p>\n
JAKARTA (JP): Minister of Manpower Fahmi Idris is expected to
\nannounce increases in the official minimum wages this week, a
\nmember of his staff said yesterday, Antara reported.<\/p>\n
Director General of Guidance and Supervision Syaufie
\nSyamsuddin told reporters that the increases had been decided
\nafter consultations with representatives of workers and
\nemployers.<\/p>\n
Syaufie admitted official minimum wages had been eaten away by
\ninflation.<\/p>\n
If they represented 92.5 percent of the minimum subsistence
\nlevel in 1997, now, after inflation, they represented a mere 65
\npercent, he said.<\/p>\n
The government traditionally increases minimum wages on April
\n1. But because of the economic crisis affecting many companies,
\nthe previous manpower minister, Theo Sambuaga, decided to freeze
\nall increases indefinitely, overruling objections from trade
\nunions.<\/p>\n
The government sets different minimum wages for different
\nprovinces in accordance with the local standards of living.<\/p>\n
The current minimum monthly wage for a worker in the Greater
\nJakarta Area is Rp 172,500 (US$11.50). Batam has the highest
\nminimum wage, Rp 235,000, reflecting the high cost of living
\nthere. Yogyakarta has the lowest, Rp 106,500.<\/p>\n
The inflation rate last year was 17 percent, while the rate
\nfor the first five months of 1998 has already exceeded 40
\npercent. Economists predict inflation to reach 100 percent in all
\n1998. (emb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-set-to-increase-minimum-wages-1447893297",
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