Hikes in minimum wage between 5% and 55%<\/p>\n
JAKARTA (JP): The increases in regional minimum wages taking
\neffect on April 1 will be determined independently by respective
\nprovinces, with Aceh so far proposing the highest increase of
\n54.97 percent and West Java the lowest at 5.13 percent.<\/p>\n
\"In accordance with the implementation of regional autonomy,
\nregional minimum wages will be set by governors in cooperation
\nwith regional workers unions and regional chapters of the
\nIndonesian Employers Association,\" Minister of Manpower Bomer
\nPasaribu said on Thursday during a hearing with the House of
\nRepresentatives' Commission V for labor and social welfare.<\/p>\n
He declined to elaborate on the details saying that several
\nprovinces had yet to submit their proposals, but promised an
\nofficial announcement by the end of the month.<\/p>\n
The two proposals already submitted mean that the monthly
\nminimum wage in West Java will be raised from Rp 200,000 to Rp
\n210,260, while in Aceh there will be an increase from Rp 171,000
\nto Rp 265,000.<\/p>\n
Bomer conceded that despite the increases the purchasing power
\nof workers was still not enough to purchase their minimum daily
\nneeds.<\/p>\n
Without revealing the increase in South Sulwesi, he pointed
\nout that even with an increase in the minimum wage, workers in
\nthat province would still only be able to provide for two-thirds
\nof their basic needs.<\/p>\n
He expressed hope that with continued economic progress
\nworkers wages would be high enough to satisfy their basic needs
\nby 2001.<\/p>\n
Bomer said despite the decentralized authority, the central
\ngovernment would establish common rules for regions in setting
\nminimum wage levels in the future.<\/p>\n
\"With these rules, the central government will encourage
\nregions to set minimum wage levels above the minimum human need
\nlevel because regional autonomy is aimed at improving people's
\nsocial welfare, including workers,\" he said.<\/p>\n
He asserted that the central government could not raise
\nminimum wages arbitrarily as it had to adhere to official
\nprocedures which also involved representatives of workers and
\nemployers.<\/p>\n
\"The government concedes that the current minimum wage level
\nis so low that workers' purchasing power continues to weaken as a
\nresult of the prolonged monetary crisis and the high-cost
\neconomy, conditions which have simultaneously affected employers.
\nAny increase must be adjusted to economic conditions,\" he said.<\/p>\n
Strike<\/p>\n
Meanwhile, Yacob Nuwu Wea, chairman of the Federation of All
\nIndonesian Workers Unions (FSPSI), warned that labor unions would
\ngo ahead with their threat to call for a national strike if
\nminimum wages were not increased by at least 50 percent.<\/p>\n
\"We will go ahead with our call for a national strike if our
\ndemand is not met,\" he said after the hearing.<\/p>\n
Yacob, who himself is a legislator representing the Indonesian
\nDemocratic Party of Struggle, said Bomer, FSPSI's former
\nchairman, should be fighting harder for workers' aspirations.<\/p>\n
He argued that the government should revise the data
\ncomponents it used in formulating minimum wages as they were
\nobsolete.<\/p>\n
\"The government should phase out the 43 wage components that
\nare now out of date and replace them with 102 standard
\ncomponents. Workers in industrial plants no longer need the
\ncandles, the kerosene and the low price rice that are included in
\nthe current wage components,\" he said.<\/p>\n
Yacob further asserted the need for workers to be given due
\nrecognition for their toil by allowing them to eventually have
\nthe purchasing power to own a house, clothing and send their
\nchildren to school.(rms)<\/p>",
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