Not the right time to lift minimum wage: Employers<\/p>\n
JAKARTA (JP): Both employers and workers gave cautious
\ncomments Saturday over whether the minimum wage in the city
\nshould be increased to allow for rising prices.<\/p>\n
Djafar Tirtosentono, chairman of Pulau Seribu Marine Tourism
\nAssociation, told The Jakarta Post that it was hard even to stay
\nalive in tourism these days due to the current monetary crisis.<\/p>\n
"Imagine this. Every year, especially in peak holiday seasons
\nlike this, our cottages are always booked out. But right now, we
\nhave only 10 percent of the visitors than usual. This time is our
\nlowest season. So, we can't possibly give raises," Djafar said.<\/p>\n
Djafar made the remarks when asked to comment on the
\nmunicipality's proposal to increase the minimum wage. Based on
\nthe municipality's proposal, the existing wage should be
\nincreased by 13 percent to meet basic living expenses.<\/p>\n
"Basically I agree with the proposal, but I don't think this
\nis the right time to announce an increase. It's just impossible
\nto do that because we have to strive just to keep our businesses
\nalive."<\/p>\n
Most businesses, including those in tourism, have been
\nseverely hit by the monetary crisis, he said.<\/p>\n
"Since last October, many vacation reservations have been
\ncanceled."<\/p>\n
Holiday packages, which are quoted in U.S. dollars, have more
\nthan doubled in cost. For instance, if a holiday package was only
\nUS$3,500 a few months ago, it would now be $6,750 because falling
\noccupancy rates has sparked increases in holiday packages to
\ncover operational costs. Eventually, only a few people go on
\nvacation, he said.<\/p>\n
Besides the currency crisis, tourism has experienced a slow
\nperiod due to the haze in Indonesian skies, he said.<\/p>\n
"Tourists, especially foreigners, are afraid to come here
\nbecause of the haze issue. All of these things worsen the
\nsituation. Therefore, what we can do now is look after our
\nbusiness so there won't be any workers' dismissals," Djafar said.<\/p>\n
"Wait until at least six months from now. If the economic
\ncondition improves, then we can talk about a wage hike."<\/p>\n
The Rp 172,500 ($33.17) monthly minimum wage in Jakarta covers
\nonly 96 percent of basic needs.<\/p>\n
Based on the municipality's calculations, a 13 percent
\nincrease would meet basic living expenses.<\/p>\n
The calculations take into account the cost of food and drink,
\nhousing and related items, clothing and various needs such as
\ntransportation, recreation, medicine and education.<\/p>\n
Meanwhile, Ferdinand M.J., director of a food producer, said
\nthat even though it was a festive season, it was hard to consider
\nincreasing wages.<\/p>\n
"No business in the city is unaffected by the monetary crisis.
\nSo I don't think we can afford a raise. Moreover, my company has
\njust dismissed some 100 workers.<\/p>\n
"It's not that we don't want to give our workers better
\nprosperity. We are really in a jam here," Ferdinand said.<\/p>\n
When asked about the ideal minimum wage for workers, he said
\nthat if it could, the company would triple wages.<\/p>\n
"But we have to be realistic. Not all companies in Jakarta
\nhave the ability to provide a 13 percent raise," he said.<\/p>\n
Some workers expressed their hopes and fears regarding a wage
\nincrease.<\/p>\n
Suprapto, a technical worker at a large factory in West
\nJakarta, said he was happy with the proposal.<\/p>\n
"I hope the municipality can realize the proposal. It's so
\nhard for us to fulfill our families' daily needs because food
\nprices have crept up these days," he said.<\/p>\n
He hoped an increase in the minimum wage would not be followed
\nby increased prices of goods.<\/p>\n
Andy W. Subarkah, a worker in tourism, said he would rather
\nkeep his job with a small salary. "I know it's impossible for us
\nto get a raise now. It's better this way than to have a big raise
\nbut having other workers fired." (edt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/not-the-right-time-to-lift-minimum-wage-employers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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