Minimum wages to be hiked in nine provinces<\/p>\n
JAKARTA (JP): Nine more provinces will raise the minimum daily
\nwage beginning in August as the government warned yesterday that
\nstarting next year, hikes will be made simultaneously nationwide.<\/p>\n
Aceh, North Sumatra, Jambi, South Sumatra, Lampung, West
\nKalimantan, East Nusa Tenggara, Maluku and Irian Jaya will raise
\ntheir daily minimum wages by between 19 and 35 percent beginning
\non Monday.<\/p>\n
In Aceh the minimum wage is being raised 21 percent to Rp
\n3,100, in North Sumatra by 21 percent to Rp 3,750, in Jambi by 25
\npercent to Rp 3,000, in South Sumatra by 30 percent to Rp 3,000
\nand in Lampung by 22 percent to Rp 3,000.<\/p>\n
In West Kalimantan, the minimum wage will rise by 33 percent
\nto Rp 3,000, in East Nusa Tenggara by 19 percent to Rp 2,500, in
\nMaluku by 35 percent to Rp 3,100 and Irian Jaya by 29 percent to
\nRp 4,500.<\/p>\n
The other 18 provinces in Indonesia have already raised the
\nminimum wage levels this year.<\/p>\n
The minimum wage level is highest in Batam, a flourishing
\nindustrial designated zone south of Singapore, where the minimum
\ndaily wage is set at Rp 6,750. With the latest increase, the
\nminimum wage in Irian Jaya is the second highest at Rp 4,500,
\neven beating Jakarta where it is set at Rp 3,800.<\/p>\n
Official papers showed that the government had originally
\nintended to raise the minimum wage level in North Sumatra to only
\nRp 3,100 a day. It was not clear whether the upward revision had
\nanything to do with April's massive labor unrest in Medan, the
\ncapital of North Sumatra.<\/p>\n
Director General for Labor Standards and Industrial Relations
\nSuwarto said the minimum wage increases in the nine provinces had
\nalready been announced as far back as April and May, ample time
\nfor companies affected by the ruling to make the necessary
\npreparations.<\/p>\n
The minimum wage levels are set jointly by the local
\nrepresentatives of employers, workers and the government in each
\nprovince. The Ministry of Manpower simply approves them.<\/p>\n
Protests<\/p>\n
When the minimum wages in Jakarta and West Java were raised on
\nJan. 1, there were storms of protests from employers who said
\nthey were not given enough time by the government to make the
\nnecessary adjustments. The government ignored the complaints.<\/p>\n
Many workers in the two regions went on strike, some of which
\nturned violent, as they pressed their employers to abide by the
\nruling. The government later clamped down on violating companies
\nand threatened to prosecute them.<\/p>\n
Suwarto yesterday said that beginning next year, the increase
\nin the minimum wages will be made simultaneously nationwide, the
\nfirst increase being expected for April 1.<\/p>\n
He said the minimum wages in all the provinces will at least
\nequal what experts consider the \"minimum physical requirements.\"<\/p>\n
In many regions, including Jakarta and West Java, the minimum
\nwages are already close to the minimum physical requirements,
\nwhich are calculated on the basis of local consumer index prices.<\/p>\n
But in a number of regions, the minimum wages are still some
\n60 percent of the minimum physical requirements.<\/p>\n
Suwarto said the government is currently reviewing the minimum
\nwage regulations, hoping to tighten sanctions against violators
\nto ensure greater compliance.<\/p>\n
Under the present regulation enacted in 1969, a company owner
\nwho does not pay his workers the minimum wage level faces a
\nmaximum of a three-month jail term, and\/or Rp 100,000 in fines.<\/p>\n
Suwarto said the government will not hesitate to prosecute
\ncompany owners who ignored the minimum wage regulations.<\/p>\n
The regulations allow for exceptions if the companies's
\nfinances prevent them from paying the minimum wage levels.<\/p>\n
Suwarto said companies seeking to be exempted must prove in
\ncourt that they truly cannot pay the minimum wages. (rms)<\/p>",
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