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.