Museno asks businesses to prepare for the new wage standard
Museno asks businesses to prepare for the new wage standard
JAKARTA (JP): Deputy Governor for Public Welfare Affairs R.S.
Museno urged all businesses in Jakarta yesterday to prepare for
the new minimum wage standard which will go into effect in April.
"Company owners have to start calculating their budgets
bearing in mind the government's new regulation on the minimum
wage," Museno said.
The government announced on Jan. 3 that it will raise the
minimum wage level by between 10 percent and 35 percent in 19
Indonesian provinces as of April 1. The minimum wage level in
Jakarta has increased 21 percent from Rp 3,800 to Rp 4,600 a day.
The level is set for a seven-day or 40-hour working week and
is calculated on a 30-day basis. This means that a worker in
Jakarta should take home at least Rp 138,000 a month beginning
next April, up from Rp, 112,000 at present.
The minimum wage level includes up to 25 percent in
allowances, but excludes incentive bonuses.
Purbadi Hardjoprajitno, the Jakarta Chapter Chairman of the
Indonesian Employers Association, told The Jakarta Post that
businesses should have ample time to make necessary preparations
for the new wage standard.
Purbadi added that the unreadiness of many businesses in
raising the minimum wage of their employees last year was the
main cause of several labor protests.
However, Salam Sumangat, the Jakarta Branch Chairman of All
Indonesian Workers Union, said that the increase would not
"guarantee" that the number of labor protests or strikes would be
reduced.
Freddy Tuamelly, Chief of the Ministry of Manpower's Jakarta
office concurred with Salam.
"During recent labor strikes, workers were not fighting for
their basic rights like a minimum salary, overtime payments or
menstruation leave but rather for various other reasons, such as
the right to form a workers union," Freddy said.
Meanwhile, Museno said that the government's decision to
increase the minimum wage level was to improve the welfare and
living conditions of all workers.
He also said that all businesses in Jakarta that are already
paying a basic wage higher than the new minimum are not allowed
to cut the current salaries of their workers.
However, Museno said that those companies that cannot fulfill
the new minimum wage regulation can apply for "tolerance" to the
Ministry of Manpower's office in Jakarta, but he expected that no
companies would do so.
Freddy Tuamelly said there are 24,992 companies in Jakarta but
only 600 have been listed as members of Apindo. (mas)