Malang companies fret over proposed new minimum wage<\/p>\n
Wahyoe Boediwardhana, The Jakarta Post, Malang, East Java<\/p>\n
More than half of 200 companies in Malang, East Java, would go
\nout of business if the local governments there agree to set a Rp
\n710,000 (US$71) minimum monthly wage for workers.<\/p>\n
Deputy chairman of Indonesian Businessmens Association in
\nMalang, Samuel Molindo, said that of the more than 200 companies
\nthere, most of them were medium-sized businesses.<\/p>\n
He said that the new minimum wage, proposed by Malang Mayor
\nPeni Suparto and submitted to the governor for approval, was
\nhigher than the association's proposal.<\/p>\n
The municipal administration proposed a 24 percent hike in the
\nminimum wage, which currently stands at Rp 575,300 per month,
\nwhile the association proposed a 13 percent increase, or Rp
\n653,000.<\/p>\n
\"Frankly speaking, most companies could not afford to pay a
\nminimum wage of over Rp 700,000 since they have been burdened by
\nhigher operational costs following the government's move to raise
\nfuel prices,\" Samuel said, adding that 10 companies had already
\ngone out of business following the fuel price hike.<\/p>\n
Head of Malang city's Manpower Office, Darussalam Subekti,
\nacknowledged that many companies could not survive if the new
\nminimum wage was approved and predicted many would only last
\nanother three months. He urged the company and its workers to sit
\ntogether to agree on a minimum wage that recognized their
\nrespective positions.<\/p>\n
\"In this case, they can reach win-win solution. The workers
\ncan cope with their living expenses while the company still can
\nremain in business,\" Darussalam.<\/p>\n
The Manpower Office's idea was welcomed by Samuel, saying that
\nworkers and company management should all sit together to
\ncompromise on the amount of the minimum wage.<\/p>\n
\"But not more than Rp 700,000 because more than 50 percent of
\ncompanies in Malang might postpone paying the minimum wage. It
\nwould be useless if the minimum wage was set at Rp 710,000 but
\nthen companies asked for a postponement in paying it,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malang-companies-fret-over-proposed-new-minimum-wage-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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