Proposed minimum wage for Jakarta is appropriate

Proposed minimum wage for Jakarta is appropriate

Jakarta Governor Sutiyoso has set the province's minimum wage
at Rp 591,266, 38 percent up from the present level of Rp 426,250
effective from January 2001.

The Jakarta chapter of the Association of Indonesian
Entrepreneurs (Apindo), however, has threatened to sue Sutiyoso
and halt production for three to seven days if he enforces this
new minimum wage. Apindo insists the new wage should be Rp
490,000; only a 15 percent increase from the current level.

Sutiyoso argued that the proposed minimum wage was a
compromise as workers demanded Rp 620,000 to cover their basic
living expenses.

Unfortunately, even when the manpower minister suggested that
companies that could not afford the new rate be audited, Apindo
objected.Apindo's argument that the new rate would only be
effective when the salaries of upper-ranking employees are also
raised does not hold water. Why don't they just cut those higher
salaries? They can introduce efficiency in other sectors.

Now that the cost of living is rising, workers find it hard to
even live a decent life with their families, let alone save part
of their salary.

Indeed, companies are often made milking cows by the those in
power, but this does not mean that in turn they should exploit
their workers. These workers have already tightened their belts
-- they have nothing left to exploit.

-- Warta Kota, Jakarta