Wed, 10 Apr 1996

From: Jawawa

Bus fare increase

From Neraca

The fixed-income community finds the increase in bus fares burdensome and regards the increase of regional minimum wages, applicable as of April 1, meaningless. Let me give an example.

Previously I earned Rp 200,000 a month. Rp 100,000 was spent on my family's daily needs and Rp 30,000 on transportation. So I had Rp 70,000 left for less urgent needs.

With the 10 percent wage increase I now earn Rp 220,000, but prices of commodities have also increased by 10 percent. This means that the daily needs of my family now cost me Rp 110,000 and transportation Rp 40,000. Again I have Rp 70,000 left which is exactly the same amount as previously. What if commodities increase by more than 10 percent, say by 15 percent or more? How would I survive on such a small income?

Although we are taught to thank God for any improvement, the recent increase in minimum wages was far below expectation.

SATOTO ADISURYA

Depok, West Java