Firms seek delay on minimum wage

Firms seek delay on minimum wage

JAKARTA (JP): A total of 82 companies nationwide have applied
to the government to be exempted from the new minimum wage levels
which came into force on April 1, Minister of Manpower Abdul
Latief said yesterday.

Latief told a hearing of the Commission VI of the House of
Representatives that three applications have been processed by
his office and they have been given nine months to comply.

The government on April 1 hiked the minimum wage levels across
the nation by five to 35 percent.

The current daily minimum wage for Jakarta is Rp 4,600
($2.07), Rp 3,700 for East Java and Rp 4,600 in West Java. The
highest minimum wage level is Rp 4,750 for Irian Jaya while the
lowest is Rp 2,850 in Yogyakarta.

The majority of the 157,819 companies registered with the
Ministry of Manpower complied immediately with the hikes but 82
applied for exemption for various reasons, mostly financial
difficulties.

Latief said that the Ministry of Manpower is handling
applications from 30 companies which employ more than 100
workers. The regional offices of the ministry is handling the
other 52.

Of the 82 applications, 53 of them are in East Java, 10 in
South Sumatra, four in Bengkulu, two in Jakarta, two in Central
Java, six in West Java, two in Bali and two in Ambon. Of the 82
companies, 62 come from the trade sector, 13 from agriculture and
plantation and seven from manufacturing.

Latief said 59 companies have ignored the minimum wage
regulations. Their cases are now being processed for possible
prosecution, he added.

If found guilty by the court, those companies, or the
employers, could be liable to fines between Rp 25,000 and Rp
300,000, and or, between six months and one year imprisonment.
(03)