Sutiyoso insists on minimum wage

City administration officials announced on Friday that their decision to establish a new provincial minimum wage should be put into place this month, while allowing businessmen the opportunity to submit objections to the decision.

"The decision on the minimum wage should be applied this month. But they could submit their objections," Governor Sutiyoso told reporters at the City Hall, alluding to businessmen affected by the change.

Sutiyoso invited the Jakarta chapter of the Indonesian Employers' Association (Apindo) to submit its objections up until Jan. 21, describing its members' financial inability to meet the mandated wage.

He added that he regretted the fact that the association is suing the city administration in Jakarta Administrative Court.

"They are very uncooperative -- the association was earlier involved in deciding the minimum wage; now, they are suing us," the governor said.

The court reportedly ordered the administration to postpone the minimum wage application until it had reached its final verdict.

The administration appealed the court's order so as to postpone the application of the minimum wage.

On Thursday, Apindo again announced its rejection of the increase of the provincial minimum wage, saying that businesses there could only afford the current amount of Rp 460,500 a month.

The governor issued a decree on Nov. 2 raising the monthly provincial minimum wage for 2002 up to Rp 591,600 (less than US$60) from the current Rp 426,500. --JP