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ozens of Korean companies operating in the Cakung-Cilincing industrial area in North Jakarta are seeking city administration approval to postpone raising workers'€™ monthly salaries to the new minimum rate, set at
Rp 2.7 million (US$212).

Each of the 27 companies, which produce garments and textiles, employs 1,000 to 2,000 workers.

The head of the Jakarta chapter of the Indonesian Employers Association (Apindo), Suprayitno, however, does not support the companies'€™ request, saying that the minimum wage is '€œrational and final'€.

'€œNone of the companies requesting the exemptions are members of Apindo. Apindo, however, will not support the proposal as our minimum wage negotiations have been finalized,'€ he said.

Furthermore, Suprayitno said, the minimum wage in Jakarta was less than that of neighboring cities. Bekasi, West Java '€” home to a number of industrial areas '€” has set its 2015 minimum wage at Rp 2.9 million per month.

'€œEven for labor-intensive companies, the figure is acceptable, even more acceptable than Rp 2.9 million. In addition, the companies should not be worried about fuel prices as [the government] has reduced the [Premium] fuel price,'€ he said.

Just before the end of 2014, the central government reduced the price of Premium gasoline to Rp 7,600 per liter from Rp 8,500 per liter because the old price had exceeded the market value due to a recent drop in global oil prices.

Suprayitno also lamented the companies'€™ demand for a delay in applying the new minimum wage.

'€œLast year they also requested the same thing [postponing the increase]. We don'€™t want this to be repeated every year as part of their strategy. It may also be a case of the companies no longer being able to compete in Jakarta,'€ he said.

Jakarta Remuneration Council member Sarman Simanjorang said on Tuesday that the companies had filed the request with the council in December. The council is currently assessing the proposal.

'€œWe will assess three aspects: each company'€™s profit and loss reports that have been audited by a public accountant, business projection for the next two years and agreements between company management and employee representatives. After assessment, the council will visit each company to check and recheck, as well as communicate with labor union representatives and company management,'€ he said.

The number of companies seeking exemptions, however, was lower than last year.

'€œLast year, 50 companies submitted requests. Most of the companies were foreign companies, some of them Korean. Of the total 50, we only granted exemptions to 14,'€ he added.

Sarman pointed out that assessments would take up to four weeks.

'€œThe sooner, the better. We may announce the council'€™s decision in the third week of January or by the end of the month at the very latest.'€

Apindo promised that it would not interfere with the council'€™s evaluation. '€œApindo respects the companies'€™ move because it is their right to submit such a request. We will also respect the governor'€™s decision on whether to approve or disapprove the requests,'€ Sarman said.

Governor Basuki '€œAhok'€ Tjahaja Purnama has hinted that he would not grant the requests but instead encourage companies that cannot pay the new minimum wage to move to another area with a lower minimum wage.