Minimum wage in Lampung hiked

BANDAR LAMPUNG, Lampung: The provincial government will increase the standard daily minimum wage from Rp 3,000 (US$1.5) to Rp 3,500 as of April next year.

The local branch of the All-Indonesian Workers Union (SPSI) welcomed the plan yesterday and said that the government should see to it that employers abide by the regulation.

"The pay rise is very reasonable for Lampung and I see no reason why employers should have any objections," deputy local SPSI chairman M. Tahir Rajakapitan said.

The provincial government has asked local employers to make the "necessary preparations" so that they could implement the regulation when it is put into effect, Antara reported.

But the news was received with skepticism by the local chapter of Indonesian Entrepreneurs Association, which argued that the increase was "too much" for most of its members here. (pan)