Minimum wage rise fails to impress most workers

JAKARTA (JP): Most workers have shown no enthusiasm over the government's recent announcement of wage increases, saying the increase would not really help them met their daily needs.

Ani, 21, and Wawan, 25, two workers of a bra manufacturer in Kemandoran, West Jakarta, said the wage increase was insignificant.

Ani and Wawan, who are paid Rp 4,700 (US$1.90) daily, said the amount was too low as the previous regional daily minimum wage was Rp 5,200 ($2.10).

The government announced Wednesday that all regional minimum wages were to be raised by 10 percent. The minimum monthly wage in Greater Jakarta (including Bogor, Tangerang and Bekasi) would increase from Rp 156,000 (US$68) to Rp 172,500 ($75).

"That's why we are not overly delighted. Moreover, it is as yet only an announcement. We have not received the increase.

"We are always trying to find ways to make our tiny income support us. It is very hard," said Ani, who graduated from an economic high school at Magetan, East Java, in 1994.

Wawan, a native Jakartan, said what he needed now was "not to be jobless". He said he was grateful to be working, although his income did not meet his basic needs.

Other worker, Hartati, 20, of a garment factory in Nusantara Bonded Zone in Tanjung Priok, North Jakarta, said the increase would not change their lives.

The elementary school graduate said the factory paid a daily wage of Rp 5,300, which was more than the old regional minimum wage.

She said the slight increase would not change anything. "It's nothing special. But if on the promised day, April 1, the management does not give the increase, we certainly will go on strike," said Hartati.

Her friend Yuni, 17, said the increased cost of daily needs made the hike in the minimum wage meaningless. "We remain in the same condition. Nothing will change."

Yuni, who plans to go to senior high school this year, said she would definitely seek a better job after her graduation.

Observers

Observers voiced understanding Saturday of the workers' cool reactions, saying the new wage would not cover the prices of goods and foodstuff in the coming months.

Faisal Basri, the head of the department of Development Economic Studies at the University of Indonesia, said the increase would "mean nothing" to the workers.

The head of the labor division of the Indonesian Legal Aid Institute, Teten Masduki, shared the opinion, saying the increase would not help the workers cope economically.

Quoting recent research conducted by various non-governmental organizations, a bachelor worker spends an average of Rp 251,000 ($107.20) a month, Teten said.

The research also indicated that workers spend more than 60 percent of their income on food, he said, while inflation in food prices exceeded 15 percent.

"After the increase in April this year, the workers will still have to find an extra Rp 79,000 ($33.30) to meet their monthly needs," Teten said.

He said the decision to increase wages by 10.7 percent was only based on the average annual inflation of 6.4 percent. While increases in food prices and other basic needs were not taken into account, he said.

Both Faisal and Teten said the wage hike was more a political than economical move.

They said the general election, scheduled for May 29, might be behind the decision to increase wages. (07)