Fuel price hikes cause hardship for Batam workers

Fadli, The Jakarta Post, Batam

Batam workers expressed concern on Saturday that their lives were getting tougher after the fuel price hike triggered skyrocketing cost of living in the city. "The situation has deprived Batam workers. Sadly, there has been no signal from the government or employers to raise the minimum wage in order to cushion the impact of fuel price hike," said Edwin Haryono, the chairman of the Batam Workers Union.

Edwin has complained that the fuel price hike had jacked up transportation costs, forcing workers to shell out up to 40 percent of their salary just to get to work.

Edwin claimed transportation fares had increased 100 percent after the government increased the price of fuel by an average 126 percent last week. Before the fuel price hike a worker had to pay Rp 2,000 for transport between Batu Aji and the Muka Kuning Industrial Park, but now they have to pay between Rp 3,500 and Rp 4,000.

Meal costs have also been affected with workers now having to pay Rp 7,000 per meal, while before the fuel price hike, they only spent Rp 5,000 per meal.

"The government has to take quick measures. Besides raising the regional minimum wage, the Batam government should also call on employers here to raise transportation allowances for workers," said Edwin.

Bambang Yulianto, the coordinator of the Indonesia Prosperity Workers Union, said a minimum wage rise was a must amid the rising cost of living. Worker morale is currently at its lowest ebb as their lives are getting harder and an wage rise is seen as important to boost their morale, said Bambang.

"Boosting workers morale is instrumental to increasing productivity at Batam factories," said Bambang.

Despite the calls, Batam employers were apparently reluctant to raise transportation allowances or salaries for workers. Abidin, the chairman of the Indonesian Employers Association (Apindo), said not only workers, but employers had also been hit hard by the fuel price hike. He said it would be difficult for employers to raise transportation allowances or worker salaries.

Meanwhile, the head of the Batam Manpower Office, Pirma Marpaung, said the local administration would urge all employers in the city to take steps to help cushion the impact of higher fuel prices on their workers.

However, Prima said employers would not be required to heed the city's call.

Batam is one of the main industrial cities in the country, thanks to its strategic location near Singapore. As a thriving industrial city, Batam draws people from across the archipelago searching for work.

Batam is home to numerous industrial companies, including electronics and plastic manufacturers, and draws investors from around the world.