Higher court rules in favor of business association

SURABAYA: The High Court has ruled in favor of an appeal by the Indonesian Business Association's (Apindo) East Java branch against the governor and the Alliance of Labor in Struggle (ABM).

In its decision, the court ruled the governor's decree on the 2009 city and regency minimum wage (UMK) was flawed and had no legal basis.

The case, which Apindo lost at the Surabaya District Court, started in November last year when then acting governor Setia Purwaka issued a decree setting the UMK at Rp 948,000, while a previous figure of Rp 905,000 had been agreed to be Apindo and the municipal salary board.

ABM coordinator Jamaludin said the High Court's decision was a big blow to the alliance's struggle for better income for workers.

"The court has acted beyond its authority, as it is the Supreme Court that has the authority to overrule a governor's decree," he said.

He added the ABM would take the case to the Judicial Commission. -JP