Firms must pay new minimum wage: Idroes

Firms must pay new minimum wage: Idroes

JAKARTA (JP): Deputy Governor for Administrative Affairs Idroes urged companies yesterday to obey the new regulation on minimum wages which will take effect on April 1.

Idroes told reporters that companies should prepare themselves to implement the new regulation as the city administration will not tolerate its violation.

"I urge companies to be ready to implement the new regulation by April 1. They have to start preparing themselves from now," Idroes said.

He explained that the government announced the rise in minimum wages three months ahead of its introduction in order to give companies ample time to prepare themselves to implement the new rules.

The government announced on Tuesday that it would raise the minimum wage in 19 provinces as of April 1. In greater Jakarta the minimum daily wage will be raised by 21 percent, from Rp 3,800 (US$1.73) to Rp 4,600 (US$2.10).

Idroes said that companies should obey the regulation, since the decision to hike minimum wages is primarily aimed at improving workers welfare.

He said the increase was badly needed by workers in the capital because the cost of living here is higher than in any other region in the country.

"Workers deserve to get a raise because living in Jakarta is expensive. They spend a lot of money on transportation because they live far away from the factories in which they work," Idroes said.

He said there had been few violators of last year's regulation, which raised wages from Rp 3,000 to Rp 3,800 per day. Nevertheless, the city administration would be closely watching the implementation of this year's raise.

"Most companies in the city complied with last year's wage raise regulation, and I am sure that they will also obey the latest one," Idroes said.(yns)