Indonesian Political, Business & Finance News

Workers left to grin and bear planned minimum wage hike

| Source: JP

Workers left to grin and bear planned minimum wage hike

JAKARTA (JP): Workers in the greater Jakarta area who receive
the minimum wage said on Tuesday a planned raise would make
little difference in their spending power due to the spiraling
cost of living.

Interviewed by The Jakarta Post separately, casual laborers,
including factory workers, street sweepers and janitors, said
they were dissatisfied with the proposed increase but had no
option other than to accept if they wanted to keep their job.

They feared that rejecting the proposal amid continuing
economic hardships could lead to them joining the ranks of the
unemployed.

They told of scrimping and saving to survive, including
through bringing meals from home and making sure expenditures are
limited to their basic needs.

"The living costs here for a single man like me is about Rp
250,000 (about US$35) at average per month," said Sugiarti, a
factory worker in nearby Tangerang.

"If the new minimum wage is Rp 286,000 per month, it will not
make any difference in my life."

Another worker, Sadino, nodded in agreement.

"We don't have anything left at the end of each month for
savings," he said.

Several janitors at the City Council complex said they were
paid below the minimum wage.

Surya, who has worked for a cleaning service company for 10
years, said he received Rp 165,000 per month.

His colleague, Dian, added the company cut Rp 3,500 from their
wages for each day they missed work.

Both men admitted that it was almost impossible to rely solely
on their monthly income.

"We always bring our own lunch from home to cover our meal
expenses," said Dian, saying a cup of instant noodles available
in the compound cost Rp 2,500.

They depend on the generosity of city councilors, who often
give them tips, Suryana said.

"Sometimes they ask us to run an errand for them and in return
they give us small tip for our services," he said.

"But most of the new councilors here are not as generous as
their predecessors."

The Ministry of Manpower announced on Monday an increase in
the official regional minimum wage level, ranging between 15
percent and 55 percent, from April 1. The level in Jakarta will
be increased 23.81 percent to Rp 286,000, from Rp 231,000.

Lower

Two Central Jakarta street sweepers, who work for Sarana
Organtama Resik, said they struggled to make ends meet each month
on wages below the minimum level.

Newly hired Fajar, 19, said he earned Rp 4,350 daily (Rp
130,500 per month). He said he spent Rp 1,000 daily on
transportation from his home in Pondok Terong in Citayam, Depok,
and Rp 1,500 for lunch.

The rest he saves to help finance his brothers' elementary
school educations.

He said his only choice was to continue working as a street
sweeper until he could find a better job.

"I plan to continue my studies later but my priority at the
moment is to finance my two younger brothers' schooling."

Titi S.P., who has been working as a street sweeper since last
August, earns Rp 8,900 per day.

She spends Rp 1,000 for the daily return bus fare from her
house in Tanjung Priok, North Jakarta, Rp 2,000 for lunch and
some Rp 15,000 for her family of three teenagers.

"I want my sons to finish their studies," she said, adding
that her husband was a public minivan driver.

"I have to spend the money carefully so that it will last for
one month."

In Tangerang, the branch of the All-Indonesia Workers Union
(SPSI) rejected the 17 percent minimum wage raise to be
implemented in both the regency and mayoralty.

"It's such a small amount that it undermines the laborers
here. We want similar raise to what was given to Jakarta," SPSI's
Agus Djaya said on Tuesday.

"We will visit Bandung on Wednesday to meet with Governor
Nuriana about the matter."

SPSI's Tangerang chairman Hermanto Achmad said a commensurate
raise to Jakarta's 23.81 percent, or Rp 286,000, must be given
equally to workers in Greater Jakarta, spanning Tangerang, Bogor
and Bekasi.

"It's most unfair," he said, adding that daily living expenses
in Tangerang were similar to Jakarta.

Some companies operating in Tangerang say they are considering
requesting a postponement of the raise for their enterprises.

"We'll evaluate the matter. The company is still suffering
from effects of the high-cost bureaucracy and we don't have such
a huge budget," said Soedjoedono, president director of footwear
manufacturer PT Garuda Indawa.

The chief of staff at another footwear firm PT Tae Wha,
Djajadi, also said his company would evaluate the matter but
"will comply with the government's decision".

"The raise (in Tangerang) from the minimum Rp 230,000 to Rp
286,000 is normal." (05/06/41/edt/ind)

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