Minimum wage rise fails to impress most workers
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)