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

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

Ainur R. Sophiaan
The Jakarta Post
Surabaya

Following a two-month deadlock between employers and workers,
East Java Governor eventually decided on Thursday to set the
monthly minimum wages in 36 regencies and mayoralties in the
province for the 2002 fiscal year.

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

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' minimum physical needs.

Deputy Governor Imam Supardi said the governor hoped both
employers and workers comply with the decree to avoid any labor
disputes and strikes along the forthcoming 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 on the regional minimum wage in Gresik, Supardi said the
provincial administration has given a deadline until Dec. 26,
2001 to make a bipartite agreement between employers and workers.

"If both sides fails to make a concensus, the governor will
unilaterally set the minimum wage level in the regency," he said.

Of the 30 provinces, 16 provinces have determined their
provincial minimum wages while the remaining 16 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.

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

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