As many as 130 companies have requested that the Riau Islands administration postpones the implementation of the new Batam minimum wage of Rp 2.04 million (US$212).
Riau Chamber of Commerce and Industry (Kadin) chairman Johannes Kennedy Aritonang said on Wednesday that Kadin and the Indonesian Employers Association (Apindo) received 130 proposals of postponement from small-scale factories. The small companies said that the 45 percent salary increase from last year's Rp 1.4 million was too much.
The Riau Islands Remuneration Board set the new salary on Tuesday. According to Johannes, Kadin and Apindo are ready to file a lawsuit to challenge the new minimum salary after the Riau Islands administration officially issued the 2013 minimum wage decree.
“We will file a lawsuit at the State Administrative Court (PTUN) on the establishment of the wage after Governor Muhammad Sani signed the decree,” he said.
Governor Sani was scheduled to sign the decree on Monday. However, he was taken to Germany for a medical checkup. (cor/lfr)