City seeks 20% hike in minimum wage

JAKARTA (JP): The city administration bowed to union demands on Monday to seek a mid-term review of the minimum wage for workers in the capital, saying that it would push for a 20 percent hike from the central government.

Deputy Governor with responsibility for public welfare Djailani announced before some 2,500 protesting workers that the administration would submit the proposal for a minimum wage increase to the Ministry of Manpower for its approval beginning in September.

Djailani took part in a meeting involving representatives of an employers organization, five labor unions, some members of the City Council and officials from the Jakarta Office of the Ministry of Manpower, at City Hall.

The meeting broke down after four hours.

The unions were demanding a minimum wage of Rp 437,000 per month while the Association of Indonesian Employers (Apindo) refused to reconsider the current minimum wage of Rp 286,000 which came into effect on April 1.

Apindo negotiator Djuwito Martakusumah said after the meeting that any additional increase should be negotiated between management and workers in each company.

"Some companies can afford to pay Rp 500,000, but the figure cannot be imposed on others because they face differing financial conditions," he said.

Djailani later held a brief meeting with his staff as the protesting workers refused to leave the premises empty-handed.

He emerged with the announcement.

"I will propose the increase to the Ministry of Manpower for its approval," Djailani told the cheering protesters.

The minimum wage level is usually set through negotiations involving representatives of the unions, employers and the local government and reviewed only once a year. The Ministry of Manpower must approve the increase.

The five unions represented were the Jakarta chapters of the Federation of All Indonesia Workers' Unions (FSPSI), the Indonesian Prosperous Labor Union (SBSI), the Indonesian Metal Workers' Union (SPMI), the Indonesian Muslim Workers' Brotherhood (PPMI) and the Coalition of Indonesian Labor Unions (Gasbiindo).

"The current minimum wage is barely able to support our existence in the capital," Mustakim Ishak, chairman of FSPSI Jakarta said, describing it as an inhumane wage.

On the deputy governor's offer, Mustakim said: "It is acceptable. It's an increase."

The protesters left City Hall peacefully after hearing the announcement.

The proposed minimum wage, if approved, would bring it closer to the estimated level required for the minimum physical subsistence of a single worker living in Jakarta, which is set by the Central Bureau of Statistics at Rp 351,000 a month. (06)