Apindo OKs new minimum wage

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