More provinces raise monthly minimum wages

More provinces raise monthly minimum wages

The Jakarta Post, Jakarta

Four more provinces -- Riau, South Sumatra, Bengkulu and South
Kalimantan -- have followed suit by increasing their minimum
wages by 20 percent to 30 percent.

The monthly regional minimum wage in Riau was raised by 20
percent to Rp 394,000 (US$39.40) for the 2002 fiscal year from
the current Rp 329,000, while the minimum wage in Batam was
increased by five percent to Rp 535,000, from the current Rp
510,000.

Head of the Riau manpower and transmigration office, Sutarman
Kartodiwirjo, said here on Saturday that the new increase in the
minimum wages was stipulated in a decree issued by Riau Governor
Saleh Djasit last Friday.

He said the minimum wage hike had gained support both from the
local chapter of the Indonesian Employers Association (Apindo)
and local branches of several labor unions.

He said only companies that had obtained a recommendation from
a public accountant were exempt from the governor's decree.

"Companies found violating the decree will be taken to court,"
he said.

He added the wide gap in the minimum wage between Riau
mainland and Batam was caused by higher living costs on the
island.

In South Sumatra, the monthly minimum wage would be raised by
30 percent to Rp 331,500, from the current Rp 255,000, following
a tripartite agreement between workers, employers and the local
administration.

"The decree on the minimum wage hike will be issued in the
near future," South Sumatra Governor Rosihan Arsyad told
reporters in the provincial capital, Palembang, on Saturday.

Eddy Tolangow, chairman of the local chapter of the All-
Indonesia Workers Union Federation (FSPSI), said FSPSI had no
other alternative than to accept the increase (by 30 percent),
but the new minimum wage would cause more suffering for workers
because of the expected rise of basic commodity prices next year.

"Workers are trapped by the prolonged economic crisis and the
soaring price of basic commodities," he said.

In Bengkulu, the provincial administration decided to raise
the minimum wage by 23 percent to Rp 295,000, from the current Rp
240,000.

Ronald Marbun, secretary of the local chapter of FSPSI, said
that despite the low increase in the provincial minimum wage,
FSPSI would fight for a higher increase in sectoral minimum
wages.

"We will fight for an increase to at least higher than Rp
300,000 in sectoral minimum wages," he said.

In South Kalimantan, the minimum wage would be raised by 28
percent to Rp 377,500, from the current Rp 295,000.

Head of the local manpower and transmigration office Abdul
Munasib Halike said the governor was expected to issue a decree
on the minimum wage hike on Monday.

He said both workers and employers had also agreed to increase
the monthly minimum wage in the coal mining sector to Rp 475,000,
and to Rp 382,000 in the tourism sector.

Earlier, North Sumatra, West Java, Jakarta, East Kalimantan,
Central Sulawesi and Southeast Sulawesi announced increases in
their minimum wage.

Aceh, West Sumatra, Lampung, East Java, West Kalimantan, Irian
Jaya, South and North Sulawesi, Bali, West and East Nusa Tenggara
have yet to announce the minimum wage hike.

According to the law, the minimum wage should be announced
three months before it takes effect. The new monthly minimum
wages will be effective as of Jan.1, 2002.