Minimum wage in East Java set at Rp 453,200 in 2002

Ainur R. Sophiaan The Jakarta Post Surabaya

On Thursday, following a two-month deadlock between employers and workers, the governor of East Java moved to set the monthly minimum wages in 36 regencies and mayoralties in the province for the 2002 fiscal year.

Unlike in previous years, the decree issued by the governor stipulates that monthly regional minimum wages in all provinces and mayoralties be in accordance with their differing level of minimum needs (See Table I below).

The current minimum wage in the province is Rp. 390,000 (US$39).

Minister of Manpower and Transmigration Jacob Nuwa Wea issued a circular to all provinces last October that the regional minimum wage level for the 2002 fiscal year should be at least equal to regencies/mayoralties' basic physical and material needs.

Deputy Governor Imam Supardi said the governor hoped that both employers and workers would comply with the decree to avoid any labor disputes and strikes in the coming year.

"Both workers and employers are allowed to convey their objections to the decree, but they must have strong reasons and valid data for any possible changes in the new minimum wages," he told The Jakarta Post here on Thursday.

Asked about the regional minimum wage in Gresik, Supardi said the provincial administration has given a deadline of up until Dec. 26, 2001 to make an agreement between employers and workers.

"If both sides fail to reach a consensus, the governor will unilaterally set the minimum wage level in the regency," he said.

Of the 30 provinces, 16 have determined their provincial minimum wages, while the remaining 14 were expected to follow suit in the next ten days.

The 16 are, among others, Central Kalimantan, West Kalimantan, Southeast Sulawesi, Central Sulawesi, West and East Nusa Tenggara, Gorontalo and Irian Jaya (See Table II).

All the new minimum wages will be effective Jan. 1, 2002.