Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama.(Kompas.com/Kurnia Sari Aziza)

Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama has signed off on a city minimum wage of Rp 3.1 million (US$228.80) per month after the amount was approved by the city wage committee, which comprises city administrators, employers and employees from Jakarta.

'€œYes I have signed it,'€ said Ahok at City Hall on Wednesday as reported by kompas.com. The figure represents a 15 percent increase on this year'€™s minimum wage of Rp 2.7 million.

The figure is higher than the projected basic cost-of-living for next year '€“ Rp 2.98 million, based on a recent survey and calculations by the Jakarta wage committee '€“ and 14.2 percent above the current basic cost-of-living of Rp 2.53 million.

The Jakarta minimum wage does not completely follow newly issued Government Regulation No. 78 on the annual increase of provincial minimum wages, which based increases purely on a given year'€™s inflation and gross domestic product (GDP) growth rate. Instead, the city also considered the basic cost-of-living survey of 84 basic commodities and other daily needs of workers.

Ahok said he was ready to explain the increase to any party, particularly employers unhappy with his decision, but would not consider any proposal from employers that the implementation of the new minimum wage be delayed, the new wage becomes effective in January next year. (bbn)(+)

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