Wed, 29 Apr 1998

Labor activists urge hike in minimum wages

JAKARTA (JP): More than 50 labor activists from the Jakarta branch of the Federation of All Indonesian Workers Union (FSPSI) demanded Monday that the government increase monthly minimum wages in Greater Jakarta.

The labor activists, who failed to meet with Minister of Manpower Theo L. Sambuaga, filed their petition with Director of Labor Standards Amrinal.

The activists' spokesman, Aleksander Sinaga, told Amrinal the minister's recent decision not to hike minimum wages was lamentable.

He said that with the current minimum wage of Rp 172,000 (US$21.50), there was no way workers could make ends meet as prices had skyrocketed during the economic crisis.

"How can workers survive the crisis if their minimum wage is not paid," he said, adding that few employers in Greater Jakarta paid their workers more than the government-set minimum level.

When issuing his decree, Theo ruled out increasing the minimum wages across the country due to the crippling monetary crisis.

The minister had rejected the union's earlier demand that the government review the decision.

The head of the Jakarta manpower ministry office, Sabar Sianturi, told The Jakarta Post Monday that it was impossible for the government to review the decree because it had been endorsed by the National Tripartite Institution and that the economy had not recovered.

"Besides, the city's FSPSI chapter has backed the city administration's proposal not to raise the minimum wages for the same reasons," he said.

The government will review the decree only when the crisis ends.

Sabar added, however, that he agreed with calls that companies which were not badly affected by the economic crisis should increase their workers' wages.

Many export-oriented companies which are not badly hit by the crisis agreed to increase their workers' wages after intensive negotiations with their employees, he said. (rms)