W

orkers on industrial estates in Batam, Riau Islands are paying about 28 percent more to meet their basic physical needs, according to a local labor official.

A survey compiled by the local labor commission said that a recent 28.6 percent increase in Batam’s minimum physical need index should be used as a reference to increase the monthly regional minimum wage to Rp 1.83 million (US$191) in January, up from Rp 1.4 million.

Surya Dharma Sitompul, a member of the commission, said that the commission convened a plenary session on Sept. 12 to set the monthly minimum physical needs index to Rp 1.83 million, up 6.6 percent from Rp 1.7 million in August.

“The increase in the minimum physical needs rate has a lot to do with soaring prices, around 20 percent, of basic commodities in the same period in 2011. This could raise serious problems for many investors and employers in the province. The prices of vegetables have soared up to 40 percent, while transportation costs and rents are relatively stable,” Surya told The Jakarta Post on Friday.

According to Surya, the commission would conduct another survey by the end of November before it holds tripartite negotiations to set the provincial minimum wage for next year.

Surya also said that soaring monthly electricity bills have topped Rp 86,000 per family, contributing to the increase in the minimum physical needs rate.

“The physical minimum needs figure for the island has soared drastically, but this must not be the sole basis for a minimum wage hike for 2012. All stakeholders must take all factors and stumbling blocks into consideration, Surya said.

Surya, who is also chairman of the Riau Islands chapter of the Indonesian Prosperous Labor Union (KSBSI), said other local labor unions have conducted their own surveys and would not take hasty action.

The chairman of the Indonesian Metal Workers Union Federation (FSPMI), Suprapto, said that local unions were still consolidating the results of their individual surveys.

“We have used 80 wage components we have deemed fundamental in setting the minimum decent payment on the island,” Suprapto said.

“According to our surveys, the minimum physical needs rate on the island has reached Rp 2.6 million, and we will demand an increase of almost 100 percent in the minimum wage for next year,” Suprapto said.

Separately, Cahaya, the chairman of the Indonesian Employers’ Association’s (Apindo) local chapter, said that local authorities should be wary of industrial strikes that might be staged by workers if the minimum wage was not increased.

“We will see industrial strikes that could be larger and more violent than those last year unless the current mechanism is revised,” he said.

Cahaya said it would be better for all sides if the minimum wage was solely set by the National Wage Commission in Jakarta to prevent negotiations from disturbing economic activity and disturbing political stability.

“Apindo has yet to see a rational increase in the minimum wage. We will waste energy if the minimum wage is revised annually and will continue involving all sides in all regions and sectors,” Cahaya said.