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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