Tue, 01 Aug 2000

Jakarta workers get 20% wage hike

JAKARTA (JP): The Ministry of Manpower has granted workers in Jakarta a 20 percent mid-term minimum wage (UMR) rise effective from next month, an official said on Monday.

"The ministry has approved increasing the minimum wage from Rp 286,000 (US$32) to Rp 344,257 a month starting September," ministry spokesman Tianggur Sinaga said in a written statement.

"The decision was taken after an agreement reached (last Tuesday) by the city administration, workers' representatives, employers and ministry officials (at City Hall)," he added.

The last pay hike, from Rp 231,000 a month to the current figure, has been in place since March this year.

Minimum wages are reviewed once a year by the Ministry of Manpower.

At the meeting last week, Jakarta-based workers demanded a minimum wage of Rp 437,000 per month.

It was rejected by the Association of Indonesian Employers (Apindo), saying it would be impossible for all companies in Jakarta to pay such wages.

"We must consider the abilities of individual employers and not generalize," Apindo's negotiator Djuwito Martakusumah said after the meeting.

"Therefore, additional raises should be negotiated between management and workers at their respective companies" he added. (nvn)