Minimum wage hike hangs in the balance
Minimum wage hike hangs in the balance
JAKARTA (JP): The decision to raise worker's minimum wage
continues to hang in the balance as the government further defers
the decision due to the worsening economic crisis.
Director General of Labor Supervision of the Ministry of
Manpower Syaufi'i Syamsuddin said yesterday that the government
has yet to decide whether or not to raise the minimum wage this
year.
Syaufi'i said representatives of workers, industry
associations and the government had agreed to "postpone for the
time being" their discussion on the matter due to the current
economic upheavals.
"There is no time target (when the government will make the
decision)," Syaufi'i told The Jakarta Post when asked about the
progress of the annual wage hike discussion.
Based on a manpower ministerial regulation, the government
must announce a new workers' regional minimum daily wage in
January.
But Syaufi'i argued this year's situation was "particular".
Deputy chairman of the Federation of All-Indonesia Workers
Union (FSPSI) Wilhelmus Bhoka denied there had been an agreement
to postpone the discussion on this year's wage hike.
"We've never been told," he said. "There has never been any
talk among industry associations (APINDO), FSPSI, and the
government on the matter.
"Do you think it is a violation of regulations or not, if the
wage hike has not been announced until now?"
According to Bhoka, FSPSI should have been consulted if the
government decided to postpone the announcement of the wage hike.
"If the situation is really harsh as we all are in now, we can
talk it over first," he said.
Businessman Hariyadi P. Sukamdani, representing industry
associations on the deliberation of this year's wage hike, could
not be reached for comment yesterday.
In a discussion held at the Ministry of Industry and Trade
earlier this month, industry associations urged the government
not to raise the minimum daily wage, but said if it could not be
avoided the increase should be derived from the monthly fee
companies have to pay to the state workers insurance company PT
Jamsostek.
The Association of All Indonesian Shoe Industries, the
Indonesian Textile Association, the Association of Indonesian
Manufacturing Companies, and the Association of Indonesian Toy
Industries are calling for the wage hike to be postponed.
The minimum wage differs from one area of the country to
another. The minimum monthly wage in Greater Jakarta is Rp
172,000.
The highest minimum level paid is for those working in the
industrial designated zone of Batam, Riau, at Rp 220,500.
Yogyakarta still has the lowest minimum wage level at Rp
106,500. (aan)