Apindo OKs new minimum wage

JAKARTA: Workers can expect a 38.7 percent increase in the minimum wage here next year as the Indonesian Employers Association (Apindo) and the city administration reached an agreement on Friday.

However, not all workers can expect to be paid the Rp 591,266 monthly minimum wage, from the previous Rp 426,250, as not all companies can afford it due to financial difficulties, according to the deputy governor on welfare affairs, Djailani.

Companies unable to afford the hike can file for an exemption, with a financial report from an independent auditor, to the administration by Jan. 21 next year. If the administration agrees, the companies will not be obliged to increase their workers' wages.

The agreement was made at a meeting between the administration, Apindo and the Jakarta Chamber of Commerce and Industry at City Hall.

Apindo also agreed to withdrew a lawsuit against the administration related to the hike. The Jakarta State Administrative Court approved Apindo's request to try the case two weeks ago. The court also decided to freeze the new minimum wage, pending a final decision on the case.

The dispute between the administration and Apindo started in November after the administration set the minimum wage increase.

Governor Sutiyoso initially gave companies until Dec. 21 to request an exemption on the increase.

However, by the deadline only seven companies, out of 700 members of Apindo, had reported that they were unable to pay their workers the new minimum wage. --JP