Jakarta minimum wage to increase by 6 percent
<p>Jakarta minimum wage to increase by 6 percent</p><p>Damar Harsanto, The Jakarta Post/Jakarta</p><p> Jakarta's provincial minimum wage increase is likely to be
approved at 6 percent, a wage of Rp 711,843 (US$78.23), after the
provincial wage council voted at a meeting on Thursday, minus all
seven members of the Workers Association. </p><p>"We decided to walk out of the meeting because the council
insisted on voting for the proposed increased wage while we
insisted that the new wage met with the official minimum cost of
living allowance (KHM) of Rp 759,953," Wajis A. Mangkonna, a
workers representative, told The Jakarta Post after the meeting.</p><p>The KHM, which would have represented a 13 percent increase,
was based on a survey in July conducted by a tripartite council
comprising seven representatives each from the Jakarta
administration and the employers and workers associations.</p><p>The council decided to put the wage to a vote after members
failed to reach a consensus in meetings on Monday and last
Friday. At Thursday's meeting, the council declared the seven
representatives of the Workers Association had abstained from
voting.</p><p>But the workers association rejected the result.</p><p>In a statement signed by the seven members -- ARK Bellyonardi,
Soeparman, Gibson Sihombing, Wajis A. Mangkonna, Syawal Harahap,
Djarwadi Djenal and Haryono -- the association called on Jakarta
Governor Sutiyoso to reject the increase.</p><p>"We call on the governor only to approve the proposed increase
to a wage of Rp 759,963," they said.</p><p>Sutiyoso promised his administration would not approve the
increase until the opposing parties reached a consensus.</p><p>"I won't intervene in the bickering since the administration's
role is only as a mediator. Let they (the council) solve their
internal dispute first," he said.</p><p>However, Sutiyoso's subordinate, Jakarta Manpower Agency head
Ali Zubeir, seemed to be in favor of the voting result.</p><p>He said small firms would go bankrupt if the administration
imposed a too-high minimum wage they could not afford.</p><p>"Around 600,000 people in the city are still jobless. That's
why we must accommodate the plea of the smaller companies (for a
lower increase)," he said.</p><p>If approved, the proposed wage would be lower than the one
mentioned in circular issued by then Manpower Minister Jacob Nuwa
Wea on July 16. It called on governors nationwide to increase the
respective minimum wage to at least KHM levels.</p><p>"That (letter) is only a reference. It is not a ruling to
implement. We must use it in accordance with the real situation
of companies here," Ali said.</p><p>Indonesian Employers Association chairman Sofjan Wanandi had
said earlier employers would tolerate the increase as long as it
did not exceed the inflation rate in Jakarta, which was predicted
to be at 6.50 percent this year.</p><p>He also said should there be no compromise, voting would be
the only way to solve the debate.</p><p>The 2004 minimum wage is set at Rp 671,550 after a 6.3 percent
increase from last year's Rp 631,000.</p>
approved at 6 percent, a wage of Rp 711,843 (US$78.23), after the
provincial wage council voted at a meeting on Thursday, minus all
seven members of the Workers Association. </p><p>"We decided to walk out of the meeting because the council
insisted on voting for the proposed increased wage while we
insisted that the new wage met with the official minimum cost of
living allowance (KHM) of Rp 759,953," Wajis A. Mangkonna, a
workers representative, told The Jakarta Post after the meeting.</p><p>The KHM, which would have represented a 13 percent increase,
was based on a survey in July conducted by a tripartite council
comprising seven representatives each from the Jakarta
administration and the employers and workers associations.</p><p>The council decided to put the wage to a vote after members
failed to reach a consensus in meetings on Monday and last
Friday. At Thursday's meeting, the council declared the seven
representatives of the Workers Association had abstained from
voting.</p><p>But the workers association rejected the result.</p><p>In a statement signed by the seven members -- ARK Bellyonardi,
Soeparman, Gibson Sihombing, Wajis A. Mangkonna, Syawal Harahap,
Djarwadi Djenal and Haryono -- the association called on Jakarta
Governor Sutiyoso to reject the increase.</p><p>"We call on the governor only to approve the proposed increase
to a wage of Rp 759,963," they said.</p><p>Sutiyoso promised his administration would not approve the
increase until the opposing parties reached a consensus.</p><p>"I won't intervene in the bickering since the administration's
role is only as a mediator. Let they (the council) solve their
internal dispute first," he said.</p><p>However, Sutiyoso's subordinate, Jakarta Manpower Agency head
Ali Zubeir, seemed to be in favor of the voting result.</p><p>He said small firms would go bankrupt if the administration
imposed a too-high minimum wage they could not afford.</p><p>"Around 600,000 people in the city are still jobless. That's
why we must accommodate the plea of the smaller companies (for a
lower increase)," he said.</p><p>If approved, the proposed wage would be lower than the one
mentioned in circular issued by then Manpower Minister Jacob Nuwa
Wea on July 16. It called on governors nationwide to increase the
respective minimum wage to at least KHM levels.</p><p>"That (letter) is only a reference. It is not a ruling to
implement. We must use it in accordance with the real situation
of companies here," Ali said.</p><p>Indonesian Employers Association chairman Sofjan Wanandi had
said earlier employers would tolerate the increase as long as it
did not exceed the inflation rate in Jakarta, which was predicted
to be at 6.50 percent this year.</p><p>He also said should there be no compromise, voting would be
the only way to solve the debate.</p><p>The 2004 minimum wage is set at Rp 671,550 after a 6.3 percent
increase from last year's Rp 631,000.</p>