Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama. (kompas.com/Sri Lestari)

Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama has said that the Jakarta provincial minimum wage will increase to Rp 3.1 million (US$ 227.93) next year from the current minimum wage of Rp 2.73 million.

Jakarta will use the newly issued Government Regulation (PP) No. 78/2015 concerning wages, but it will still consider the basic cost of living (KHL) survey conducted by the Jakarta wage committee, whose members consisted of the employers, workers and Jakarta Manpower agency.

The government regulation, which has issued a follow-up of the fourth economic package to improve the investment climate, rules that the minimum wage is based on the current fiscal year'€™s inflation and gross domestic product (GDP) growth rate.

"We have used the KHL survey plus inflation and economic growth since 2012 in deciding the minimum wage. It is good if [Jakarta's minimum wage] is higher than the figure calculated based on the Government Regulation (PP)," Ahok added.

According to head of City Manpower and Transmigration Agency Priyono, based on the recent survey, the cost of living in Jakarta has increased to Rp 2.98 million next year or 14.2 percent above the current figure of Rp 2.53 million.

The basic cost of living is based on prices of 84 commodities and other daily needs of the workers.

Ahok said the new minimum wage would be effective next January. (bbn)(+)

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