T

he North Sumatra Workers Alliance (ABS) voiced its opposition on Saturday to the recently set 2014 provincial minimum wage of Rp 1.50 million (US$132.77) per month, which was decided by the provincial administration on Friday evening.

The workers said the increase of only 10 percent from Rp 1.30 million was inhumane and that it should be 50 percent.

ABS presidium member Minggu Saragih said higher costs of living driven by increased fuel and electricity prices had caused the value of workers wages to diminish by 30 percent. Therefore, he said, it was appropriate for workers to demand a 50 percent raise.

In recent days labor unions all over Indonesia have also been demanding a minimum wage hike of 50 percent or more for 2014.

'We reject anything below 50 percent,' Minggu said in a press briefing accompanied by Sukma Halawa from the Indonesian Migrant Workers Union (SBMI), Agus Sutomo from the Indonesian Metal Workers Federation (FSPMI), Amin Basri from the Medan Workers Alliance and other local and national labor union representatives.

Minggu said workers would adopt two courses of action to protest the 2014 minimum wage. First, he said, workers would take to the streets to paralyze North Sumatra's economy, and second, some 1.6 million workers would not pay vehicle taxes. 'We are capable of carrying out both of these actions if the governor does not revise the increase soon,' he said, adding that in 2012 workers had successfully forced the provincial administration to revise the minimum wage.

North Sumatra is the most populated province outside Java and has a substantial rubber and oil palm plantation industry.

Governor Gatot Pujo Nugroho said the 2014 minimum took into account the basic living standards index (KHL), inflation and economic growth. 'The minimum wage is already proper because the lowest KHL in North Sumatra is Rp 1.26 million,' he said on Friday evening.

'In deciding the 2014 minimum wage, I have consulted various parties and considered various factors.'

Meanwhile, North Sumatra Manpower and Transmigration Agency chief Bukit Tambunan said the provincial administration acknowledged the workers were demanding a 50 percent hike but that it would be difficult for the administration to agree to it.

'The 2014 minimum wage of Rp 1.50 million is the best solution for all concerned,' he said.

As of Saturday, 16 of 34 provincial administrations had raised their 2014 minimum wages. The 16 provinces are Central, East, South and West Kalimantan, Jambi, Southeast Sulawesi, West Sumatra, Bangka Belitung, Papua, Bengkulu, West Nusa Tenggara, Banten, Jakarta, Riau, Riau Islands and North Sumatra.

Manpower and Transmigration Minister Muhaimin Iskandar called on the remaining 18 provinces to immediately announce their wage hikes to avoid any possible labor problems. It is expected that the new wage levels will come into effect on Jan. 1, 2014.

The wage hikes vary in each province, depending on the inflation rate, economic growth, workers' purchasing power, basic cost of living and employer's ability to pay.

Meanwhile in Riau, deadlock in determining the 2014 minimum wage has forced members of the Riau Remuneration Board to take a vote on the issue.

The board announced a 21.4 percent increase from Rp 1.4 million to Rp 1.7 million per month. Workers had demanded a 40 to 50 percent increase in the minimum wage for the province, which is the country's largest producer of crude oil.

'We had to take a vote because as of Friday night both businesspeople and workers had failed to reach an agreement,' said Riau Manpower and Transmigration head Nazaruddin, who is also head of the Riau Remuneration Board.