Wage up by 38.7% for Jakarta in 2002

Emmy Fitri, The Jakarta Post, Jakarta

The Jakarta tripartite wages committee has agreed to recommend a 38.7 percent increase in the minimum wage for workers in Jakarta and the Greater Jakarta area in 2002, marking an increase from the current minimum wage of Rp 426,250 to Rp 591,266.

The Secretary General of the Reformed All-Indonesia Workers Federation (SPSI Reformasi) H.M. Rodja said the recommendation was a 2002 New Year's gift from workers to employers.

He said that it (the wage raise) was akin to a gift from workers as they deserved to get a much higher raise even though they had not demanded it.

"It's a gift but not entirely without strings. We need them (employers) to in return help us create what we call harmonious industrial relations between employees and employers," Rodja added.

"Although I agree with the recommendation, I have to say that the figure is still far from enough if we take the inflation rate, the basic needs of workers, and the soaring prices of basic staples and consumer goods into account," Rodja told The Jakarta Post on the sidelines of a discussion on labor and the media on Tuesday.

The tripartite committee consists of representatives from labor unions, employers and officials from the Ministry of Manpower.

Previously, such standardized wage rises were known as regional minimum wages, or UMR (Upah Minimum Regional), and were determined solely by the Ministry of Manpower.

Due to the implementation of regional autonomy in January, the central government has lost its power to determine minimum wages and instead they are set by the provincial tripartite wages committees in the provinces and then approved by the respective governors.

The Jakarta tripartite committee's recommendation will be presented to the Jakarta administration on Wednesday. "We want the government and the employers to see that this represents an act of self-restraint on the part of workers as we understand the difficulties presented by the current economic crisis," Rodja said.

Meanwhile, an employer who was close to the process of drafting the recommendation but refused to be identified, said that the planned increase in the minimum wage was not final as employers and the labor unions were still divided over the issue.

The source said employers had only agreed to raise the minimum wage by up to a maximum of 15 percent, while the labor unions were asking for more than 20 percent.

"A 15 percent increase is already hard for us. You can imagine if they ask for more than 20 percent. I'd rather not comment on that," he said.

When asked about the plan to bring the recommendation before the Jakarta administration on Wednesday, he said, "We'll see, the government is not blind. They (the administration) too have their own calculations which will give a win-win solution for employers and workers, and recognize that we are all in trouble because of this economic crisis."

The provincial minimum wage is valid only for new employees and workers with zero work experience, while other workers already employed in firms are paid above the minimum wage level.