365 firms seek exemption from minimum wage rule
365 firms seek exemption from minimum wage rule
JAKARTA (JP): Minister of Manpower Abdul Latief yesterday
disclosed that 365 companies have applied to be exempted from the
government minimum wage policy which came into force on April 1.
Latief stressed that the number of applicants represented only
0.2 percent of the 160,000 companies in Indonesia, and therefore
could not be taken to signal massive opposition to the
government's wage policy.
Speaking to reporters after reporting to President Soeharto at
Merdeka Palace, the minister said there was "absolutely no
reason" for the government to review the minimum wage policy.
Besides hiking the minimum wages by an average of 10 percent,
the government is also compelling companies to pay all their
workers -- both permanent and temporary -- on the basis of 30
working days a month, and not 25 days under the old regulation.
A number of companies, particularly those in labor intensive
industries such as textiles and garment-making, have voiced their
objections to the new wage policy, saying that it would make them
uncompetitive in the export market. Some have also threatened to
close down their factories.
Latief said the government has already approved 52
applications for exemption, and rejected one. The other 312
applications are still being studied.
Exemption is given to companies which can prove they are
suffering financial difficulties.
Latief said that while the government is prepared to help
companies with financial difficulties, firms should be more
transparent and allow the government and workers to scrutinize
their books.
He criticized companies for relying on low wages to retain
their competitive edge. This means that when they are obliged to
hike the wages, they would have difficulties, he said.
He stressed that the government is committed to continuing to
increase the minimum wage levels to a more acceptable level.
The current levels, he said, are only sufficient to provide
workers with 1,500 to 1,600 calories a day, while the ideal level
should be 3,000 calories a day.
"How can anyone work with such a low calorie intake?" he said.
(emb)