Minimum wages to be hiked in nine provinces
Minimum wages to be hiked in nine provinces
JAKARTA (JP): Nine more provinces will raise the minimum daily
wage beginning in August as the government warned yesterday that
starting next year, hikes will be made simultaneously nationwide.
Aceh, North Sumatra, Jambi, South Sumatra, Lampung, West
Kalimantan, East Nusa Tenggara, Maluku and Irian Jaya will raise
their daily minimum wages by between 19 and 35 percent beginning
on Monday.
In Aceh the minimum wage is being raised 21 percent to Rp
3,100, in North Sumatra by 21 percent to Rp 3,750, in Jambi by 25
percent to Rp 3,000, in South Sumatra by 30 percent to Rp 3,000
and in Lampung by 22 percent to Rp 3,000.
In West Kalimantan, the minimum wage will rise by 33 percent
to Rp 3,000, in East Nusa Tenggara by 19 percent to Rp 2,500, in
Maluku by 35 percent to Rp 3,100 and Irian Jaya by 29 percent to
Rp 4,500.
The other 18 provinces in Indonesia have already raised the
minimum wage levels this year.
The minimum wage level is highest in Batam, a flourishing
industrial designated zone south of Singapore, where the minimum
daily wage is set at Rp 6,750. With the latest increase, the
minimum wage in Irian Jaya is the second highest at Rp 4,500,
even beating Jakarta where it is set at Rp 3,800.
Official papers showed that the government had originally
intended to raise the minimum wage level in North Sumatra to only
Rp 3,100 a day. It was not clear whether the upward revision had
anything to do with April's massive labor unrest in Medan, the
capital of North Sumatra.
Director General for Labor Standards and Industrial Relations
Suwarto said the minimum wage increases in the nine provinces had
already been announced as far back as April and May, ample time
for companies affected by the ruling to make the necessary
preparations.
The minimum wage levels are set jointly by the local
representatives of employers, workers and the government in each
province. The Ministry of Manpower simply approves them.
Protests
When the minimum wages in Jakarta and West Java were raised on
Jan. 1, there were storms of protests from employers who said
they were not given enough time by the government to make the
necessary adjustments. The government ignored the complaints.
Many workers in the two regions went on strike, some of which
turned violent, as they pressed their employers to abide by the
ruling. The government later clamped down on violating companies
and threatened to prosecute them.
Suwarto yesterday said that beginning next year, the increase
in the minimum wages will be made simultaneously nationwide, the
first increase being expected for April 1.
He said the minimum wages in all the provinces will at least
equal what experts consider the "minimum physical requirements."
In many regions, including Jakarta and West Java, the minimum
wages are already close to the minimum physical requirements,
which are calculated on the basis of local consumer index prices.
But in a number of regions, the minimum wages are still some
60 percent of the minimum physical requirements.
Suwarto said the government is currently reviewing the minimum
wage regulations, hoping to tighten sanctions against violators
to ensure greater compliance.
Under the present regulation enacted in 1969, a company owner
who does not pay his workers the minimum wage level faces a
maximum of a three-month jail term, and/or Rp 100,000 in fines.
Suwarto said the government will not hesitate to prosecute
company owners who ignored the minimum wage regulations.
The regulations allow for exceptions if the companies's
finances prevent them from paying the minimum wage levels.
Suwarto said companies seeking to be exempted must prove in
court that they truly cannot pay the minimum wages. (rms)