C. Java raises minimum wage

C. Java raises minimum wage

SEMARANG, Central Java: After weeks of haggling with labor activists, governor Suwardi finally agreed yesterday to raise the local daily minimum wage from Rp 2,700 ($1.20) to Rp 2,800.

The increase is Rp 400 less than originally proposed by the local DP2D, the council responsible for formulating policies on regional wage levels.

Suwardi said that the government had taken the 1994 inflation rate of 9.24 percent into consideration when setting the new minimum.

He argued that were the government to increase the minimum wage to Rp 3,200, as proposed by DP2D, it would be a financial blow to the region's small-scale industries, which comprise 33 percent of small-sized industries nationwide.

"The 616,000 small scale industries in Central Java represent a backbone of the nation's economy," he said as quoted by Antara.

The central government has increased the minimum wage for all provinces except Central Java. (pan)