Bribes and levies keep workers' salaries low

Bribes and levies keep workers' salaries low

JAKARTA (JP): A legislator said the numerous levies imposed on
companies by government offices, including the Ministry of
Manpower, contribute to workers' low salaries.

The larger proportion of levies and bribes, as compared to
wages, in production costs is ironic, said Djamaluddin Waly of
the United Development Party (PPP) faction yesterday at a hearing
with Minister of Manpower Abdul Latief.

The levies, dubbed "invisible costs", make up 30 to 40
percent, while wages are a mere 8 to 12 percent of production
costs, Djamaluddin said.

The burden falls on the workers, because employers will keep
their wages at the standard of single workers while many actually
have families, he said.

Djamaluddin said at the hearing presided over by Erie
Soekardja that there are 35 kinds of taxes and fees which
companies must pay to government offices, 16 of them to offices
under the Ministry of Manpower.

Marzuki Ahmad, another member of the commission overseeing
industry and manpower, cited reports of the West Java branch of
the Indonesian Employers' Association that companies must
allocate 22 percent of production costs to bribes and levies.

He quoted President Soeharto who recently called on government
offices to wipe out all unnecessary taxes and fees.

Latief said his office will make an inventory of taxes and
fees that companies have to pay. He has said earlier that his
office will issue a decree on the subject by March.

Several legislators also expressed concern at the recent 10.63
percent hike in regional minimum wages. The Federation of the All
Indonesian Workers' Union, FSPSI, had demanded increases of up to
14 percent.

"The name minimum wages should be changed to minimum
honorariums, as wages should follow the value of one's labor,"
another legislator said.

Latief told reporters that no other country has hiked its
wages 104 percent in three years, as has Indonesia.

"We can no longer increase wages by 20 or 30 percent as we did
in the past few years. Rome wasn't built in a day. We must be
pragmatic," Latief said.

Last year the wages were increased by an average of 18.6
percent and in 1994 by nearly 30 percent.

Responding to queries about wages in the plantation sector
which are generally lower than other regional minimum standards,
Latief said he will meet Minister of Agriculture Sjarifudin
Baharsjah "soon" to discuss the subject.

"Basically we want to improve the welfare of all workers, but
there are factors which are difficult to control," he said.

The prices of commodities in the plantation sector fluctuate,
he added.

Kompas has reported that late last year, West Java plantations
were paying wages of Rp 1,600, when the regional standard was Rp
3,800.

The legislators also called for better protection for migrant
women workers. (anr)