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mid fears of security disturbances from potentially escalating workers’ rallies, Riau Islands Governor Muhammad Sani has agreed to raise the workers’ minimum wage in Batam to Rp 1.4 million (US$154.5) per month.

The new Batam City Minimum Wage (UMK), which has been upped from Rp 1.3 million, will become effective on Jan. 1, 2012.

The decision was reportedly taken on Tuesday under the lingering threat of workers continuing street protests, demanding a decent living wage.

It was feared more rallies would be counterproductive for businesses, which have responded warily to this latest wage increase.

Employers deem the amount is too high, with its increase of 20 percent on the former cap.

Riau Islands Manpower Office head Tagor Napitupulu, who is also the head of the Riau Islands Remuneration Council told The Jakarta Post that the governor had revised the 2012 Batam UMK from RP 1,310 million to Rp 1,402 million through Decree No. 555/12/12, and had announced his decision to the labor union and Indonesian Employers’ Association (Apindo) on Dec. 13.

The revision has annulled the previous decree issued on Nov. 28 on the fixed 2012 Batam UMK of Rp 1.3 million. “The governor took into consideration many aspects, especially the issue of security in Batam. He wants Batam to remain safe. If employers could not afford to pay the new UMK to workers, they should immediately send a letter to the city’s remuneration council or the mayor for postponement,” Tagor said.

The Batam municipal administration initially increased the minimum wage from Rp 1.1 million to Rp 1.3 million, but that was rejected by the workers. They showed their disdain by organizing rallies, before the authorities finally announced the revised cap.

Separately, the chairman of the Riau Islands chapter of Apindo, Cahaya, said the increase in the UMK in Batam by 20 percent was a fantastic amount.

“We are obliged to accept the decision for the sake of security in Batam. We have yet to take legal measures, such as filing for an appeal at the State Administrative Court because we deem that the law is no longer respected,” said Cahaya.

According to him, the revision of Batam’s UMK by the governor alone contravened legal procedures; therefore, Apindo has qualms if it has to go through a legal process.

“The production costs in Batam can no longer be predicted. This is a signal that there is no longer legal certainty,” said Cahaya.

Separately, the leader of the Confederation of Indonesian Workers’ Unions (KSPSI), Saiful Badri, said his union had agreed to accept a Batam minimum wage of Rp 1.5 million, following their original demand of Rp 1.76 million. However, the union has decided to accept the new UMK of Rp 1.4 million.

“The previous offer was unfair but we can accept the current UMK sincerely and we will announce it to the workers,” said Saiful.

He added that when the governor responded to the work stoppage that ended in chaos at the end of November by setting the UMK at Rp 1.3 million, all the unions rejected it and vowed to take to the streets to show their displeasure.