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Jakarta Post

Employers approve Rp 3.1 million as Jakarta minimum wage

Praying before action: Hundreds of workers pray on Friday on Jl

The Jakarta Post
Jakarta
Fri, October 30, 2015 Published on Oct. 30, 2015 Published on 2015-10-30T19:05:34+07:00

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Praying before action: Hundreds of workers pray on Friday on Jl. Medan Merdeka Selatan, near City Hall, before demonstrating on Jl. Medan Merdeka Utara in front of the State Palace to protest the new minimum-wage increase formula. (thejakartapost.com/Wenda Parwitasari) Praying before action: Hundreds of workers pray on Friday on Jl. Medan Merdeka Selatan, near City Hall, before demonstrating on Jl. Medan Merdeka Utara in front of the State Palace to protest the new minimum-wage increase formula. (thejakartapost.com/Wenda Parwitasari) (thejakartapost.com/Wenda Parwitasari)

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span class="caption">Praying before action: Hundreds of workers pray on Friday on Jl. Medan Merdeka Selatan, near City Hall, before demonstrating on Jl. Medan Merdeka Utara in front of the State Palace to protest the new minimum-wage increase formula. (thejakartapost.com/Wenda Parwitasari)

A employers'€™ representative on the Jakarta wage committee, Sarman Simanjorang, has announced that employers have approved a 2016 Jakarta minimum wage of Rp 3.1 million (US$226.45), the amount that was initially announced by Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama.

'€œThe city government insists on Rp 3.1 million, and we have finally agreed. We don'€™t want to get involved in a lengthy debate,'€ said Sarman as reported by kompas.com on Friday.

According to Sarman, the employers initially proposed a minimum wage of Rp 3.01 million, in alignment, they said, with Government Regulation No. 78/2015 on minimum wage increases, announced last week.

'€œIf it was based on the government regulation, the figure for minimum wage in 2016 should have been Rp 3,010,500. But, because representatives of the workers insist, we accept [the higher figure],'€ Sarman said.

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

It replaced the old formula that was based on a basic cost-of-living (KHL) survey of 84 basic commodities and other daily needs of workers.

Ahok said previously that the 2016 Jakarta minimum wage was not based only on the new government regulation, but still took into consideration the basic cost of living. (bbn)

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