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)