Daily wage levels to go up in six more provinces
Daily wage levels to go up in six more provinces
JAKARTA (JP): The government announced yesterday a rise in minimum wage levels for six more provinces as of April, stressing that no employer should find excuses to reject it.
The government will raise the wage levels in North Sumatra, North Sulawesi, Irian Jaya, Bengkulu, Central Kalimantan and East Java by between five and 25 percent.
Last week, the government announced wage hikes in 19 provinces. With the additional six, only Central Java is left with the same minimum wage as before.
Minister of Manpower Abdul Latief told journalists after meeting with President Soeharto that the pay hikes were expected to improve workers' well-being.
Under the new policy, the minimum wage level in North Sulawesi is raised by 17 percent from Rp 2,700 (US$1.2) to Rp 3,250, in Irian Jaya by five percent from Rp 4,500 to Rp 4,750, in Bengkulu by 14 percent from Rp 3,000 to Rp 3,500, in North Sumatra by 11 percent from Rp 3,750 to Rp 4,200, in Central Kalimantan by 25 percent from Rp 2,750 to Rp 3,750 and in East Java by 19 percent from Rp 3,000 to Rp 3,700.
No burden
Latief warned that the government would not tolerate any employer reticence as the new minimum wage level is well within their financial means.
"The increase in the daily minimum wage levels will only add an estimated one percent to any given company's total production costs. This certainly will not pose an undue burden on our industrial sector," he said.
"No companies have gone bankrupt over a rise in wage levels," he added.
A one to eight percent increase in labor costs, according to Latief, will not affect the financial capability of Indonesia's footwear and textile companies, which employ a significant portion of the country's workers.
The minister said a total of 96 companies were punished last year for violating minimum wage regulations. He added that any company requesting a wage hike postponement is most likely poorly managed and only interested in profiting from low wage levels.
The policy was made effective last month when Latief issued two decrees raising minimum wage levels by 11 percent to 35 percent in 19 provinces, including Jakarta, West Java, East Kalimantan and East Timor.
No recommendations
Director General for Industrial Relations and Labor Standards Suwarto told The Jakarta Post yesterday that the minimum wage levels for Central Java and East Nusa Tenggara had not been set yet because their governors had yet to give their wage recommendations for their provinces to the Minister of Manpower.
"The recommendations are expected this month, and we still have three months before the minimum wage regulations take effect," he said.
He added the minimum wage on Batam Island, which was raised from Rp 5,500 to Rp 7,500 last August, would not change.
The hike in the regional minimum wage level is expected to improve the purchasing power of workers and their livelihood as well as increase the amount of money in circulation.
"The policy is expected to increase the amount of money in circulation to Rp 18 trillion (about $7 billion). These funds are expected to be used by workers to do businesses of their own.
"This will encourage the growth of small and medium-scale companies and, eventually, that of the national economy," he said.
He said that the pay hikes were also expected to improve their work attitude and productivity.
Awards
Latief also reported to the President the names of 11 companies that would get Paramakarya awards for performance in terms of increased productivity this year.
As many as 63 others will get awards for worker protection over the past three years.
Soeharto is scheduled to present the awards tomorrow morning at the State Palace, when he also will officially open a three- day seminar on health and occupational safety.
Director of Labor Standards Soekarno said that at least 303 workers were killed and over 13,000 seriously and lightly injured in over 13,500 occupational accidents in 1994.
"Compared to 1993, the awareness of companies, especially small and medium-scale firms, is still low in terms of improving the health and occupational safety of workers," he said.
The number of occupational accidents occurring in workplaces in 1994 increased from 17,700 in 1993 to 152,500 cases.
He said the government would continue their health and occupational safety campaign in an effort to reduce occupational accidents in the future. (rms)