Two more provinces receive wage hike

Two more provinces receive wage hike

JAKARTA (JP): The central government has now raised the regional minimum wage level in both Central Java and East Nusa Tenggara, following minimum wage increases in the other 25 provinces.

Minister of Manpower Abdul Latief issued two more wage decrees on Thursday for the two provinces.

The minimum wage level in Central Java has been raised ten percent from Rp 2,700 (US$1.2) to Rp 3,000 (US$1.3) and 13 percent in East Nusa Tenggara, raising its minimum from Rp 2,500 to Rp 2,900.

The minimum wage level for Indonesia's 25 other provinces were increased by 11 percent to 35 percent, with the lowest level represented by Yogyakarta (Rp 2,850) and the highest by Jakarta and West Java (Rp 4,600).

The new daily minimum wage regulations will take effect on April 1 to afford employers time to prepare.

The decree increasing the minimum wage in Central Java was issued only Thursday because the provincial government and the local chapter of the All Indonesian Workers Union (SPSI), both of which sit on the tripartite board for local wage assessment, were involved in tough, prolonged bargaining over percentage levels.

During the local board meetings, the local chapter of SPSI proposed to raise the minimum wage 20 percent from Rp 2,700 to Rp 3,250 while the government insisted that the raise should not be more than Rp 150.

Governor Soewardi argued that a higher increase would hurt small-scale entrepreneurs, who are the backbone of the province's economy. (rms)