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)