Jakarta minimum wage rises by 15.38% next year

The Jakarta Administration has increased the provincial minimum wage (UMP) for 2011 to Rp 1,290,000, (US$120) or an increase by 15.38 percent from the 2010 minimum wage of Rp 1,118,009.

Jakarta Manpower and Transmigration Agency head Deded Sukandar claimed that the increase was much higher than the demand of Rp 1,197,000, or 7.15 percent, proposed earlier by workers unions.

The 2011 minimum wage, which applies for a single-status worker with under one year's work experience, however, is still below the surveyed cost of living, which stands at Rp 1,401,829.

Deded said that some sectors would enjoy a higher increase. The sectoral minimum wage will be decided  by the administration by the end of this year.

"The sectoral minimum wage is 5 percent higher than the UMP minimum, especially lucrative sectors such as automotive industries, “ Deded said. Friday.

Meanwhile, head of the Jakarta Workers Union (Aspek), Mas Muanam, said that the 2011 minimum wage referred to the economic growth forecast by 7 percent and the inflation rate of between 6 and 6.5 percent next year.