Indonesian Political, Business & Finance News

Minimum wages set for workers abroad

Minimum wages set for workers abroad

JAKARTA (JP): The government has set the minimum monthly wage for Indonesians working in the formal sectors overseas at US$400 (approximately Rp 850,000).

The monthly minimum wage for unskilled workers such as domestic helps, has been set at US$250 .

The Ministry of Manpower, in cooperation with the Association of Manpower Suppliers, established the new minimum wage levels to improve worker welfare.

Minister Abdul Latief said here yesterday that Indonesia's skilled workers deserve higher wages due to the advantages they have over workers from other countries.

"They have work ethics and they are disciplined, persistent, friendly, honest, patient and committed to their duties," he said in the opening ceremony of a management training program for members of the association.

Latief also warned worker-export companies against trading or swapping licenses with unauthorized labor exporters. He threatened stiff punishment for any company guilty of violating labor export regulations.

"You must never sell your licenses or collude with unauthorized companies and brokers to supply workers abroad," he told the association members.

The ten-day training program will last through May 12 and is being held by the Trade and Management Development Institute (TMDI).

The minister told the manpower suppliers to learn from past experiences when the government had to revoke the licenses of various delinquent companies.

He lashed out at several certified labor-export companies, which, he accused, allowed unauthorized companies to use their names to send workers overseas.

"The ministry will immediately issue the final warning and mete out administrative punishment," he threatened.

Labor-export companies play a great role in helping the government deal with the increasing unemployment rate, Latief said, adding that they are also important foreign exchange earners. As a result, the government is committed to creating favorable conditions for them, he said.

He promised a number of facilities for labor-export managers, including an expansion of their market to other countries and training programs for their workers.

Among the first steps that the ministry plans to take is a market research study of prospective markets in Hong Kong, Taiwan, the United States, Canada and European countries, he said.

He reminded the labor exporters that their businesses now face stiff competition from other Asian countries such as the Philippines, Vietnam, Sri Lanka, Bangladesh and China. These countries are known for their aggressive expansion into the labor markets of many countries.

"This condition calls for better preparation and better quality workers, which is why we have to develop suitable training programs for our workers, " he said.

Latief also called on labor exporters to prevent unfair competition and a "rates war" among themselves.

Every company must comply with the common agreement on recruitment fees and monthly minimum wages, he said. (rms)

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