Minimum wages will increase by 16%<\/p>\n
JAKARTA (JP): The government announced on Thursday an increase
\nin monthly regional minimum wages by an average of 16.7 percent.<\/p>\n
Higher increases will also be set in different sectors and
\nsubsectors, especially those less affected by the economic
\ncrisis. The measure will go into effect on April 1, according to
\nDirector General for Industrial Relations and Labor Standards
\nSyaufii Syamsuddin.<\/p>\n
He said the policy was intended to arrest the decline in real
\nwages caused by the economic hardship.<\/p>\n
\"The purchasing power of the workers continues to weaken and
\nthe labor situation will further decline if such a decision is
\nnot made.\"<\/p>\n
The government made the decision after considering both
\neconomic and noneconomic factors, he said, citing consultation
\nwith governors, various ministries, the Association of Indonesian
\nEmployers (Apindo) and the Federation of All Indonesian Workers
\nUnion (SPSI).<\/p>\n
\"So, it is a joint decision and everyone involved has a common
\nresponsibility to safeguard it.\"<\/p>\n
He expressed hope the wage increase would not draw protests
\nand criticism from employers.<\/p>\n
In Greater Jakarta encompassing Jakarta, Bogor, Bekasi and
\nTangerang, the nominal monthly minimum wage will increase to Rp
\n231,000 (US$26.25) from Rp 198,000.<\/p>\n
The monthly minimum wage level in the industrial designated
\nzone of Batam in Riau province, including islands under the Batam
\nDevelopment Authority, will be raised to Rp 290,000 from Rp
\n270,000.<\/p>\n
Batam has the highest minimum wage level due to its highest
\nliving costs; Yogyakarta retains the lowest minimum wage level of
\nRp 130,000 a month.<\/p>\n
Syaufii said the increases would still leave the average
\nminimum wage across the country far lower than the minimum
\nphysical requirements because of the economic crisis.<\/p>\n
\"The minimum wages will fall to 70 percent of the minimum
\nphysical requirement from 75.8 percent last October.\"<\/p>\n
He said minimum physical requirements were calculated on the
\nbasis of daily energy intake of 3,000 calories for a single
\nworker.<\/p>\n
Syaufii explained that sectoral and subsectoral minimum wages
\nwould be set in 19 provinces because many companies in particular
\nsectors and subsectors were able to pay their workers more.<\/p>\n
He cited firms in the plantations, mining, food and beverage,
\nmanufacturing and forestry sectors which were relatively
\nunscathed by the crisis. They were considered to be able to pay
\ntheir workers higher than the minimum wage level.<\/p>\n
Minimum sectoral and subsectoral minimum wages will be between
\n0.73 percent and 33.6 percent higher than regional minimum ones.<\/p>\n
For instance, two sectors -- farming, forestry, hunting and
\nfishery, and the manufacturing -- have been chosen in North
\nSumatra.<\/p>\n
The monthly minimum wage in the former sector is set at Rp
\n252,000 a month while that in the fish freezing sector is Rp
\n252,000, soft drink subsector Rp 221,000 and liquor industry
\nsubsector Rp 252,000.<\/p>\n
Riau has chosen only the manufacturing sector. The minimum
\nwage in the pulp, paper and rayon industry subsector will be Rp
\n255,000 a month.<\/p>\n
Syaufii said minimum sectoral and subsectoral wages in eight
\nprovinces -- Jakarta, West Java, Bali, Lampung, Central Java,
\nSouth Kalimantan, Central Sulawesi and East Timor -- were pending
\nthe submission of their proposals to the central government.<\/p>\n
Meanwhile, FSPSI chairman Datuk Bagindo criticized the
\ngovernment for raising minimum wages without consulting the labor
\nunion at the national level.<\/p>\n
\"Only FSPSI and Apindo branches in provinces were involved in
\nnegotiations on the wage increases.\"<\/p>\n
He said his organization proposed an increase by about 35
\npercent, citing soaring inflation of about 75 percent last year
\nand 3 percent over the last two months.<\/p>\n
Apindo secretary-general Purbadi Hardjo Prayitno described the
\nincrease as reasonable and in accordance with the organization's
\nproposal. (rms)<\/p>",
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