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Jakarta Post

Ahok sets Jakarta minimum wage at Rp 3.35m

Corry Elyda (The Jakarta Post)
Jakarta
Thu, October 27, 2016

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Ahok sets Jakarta minimum wage at Rp 3.35m Workers rally in front of the State Palace in Central Jakarta on Sept. 1. (JP/Dhoni Setiawan)

O

n his last day before taking leave for the Jakarta gubernatorial election, Governor Basuki "Ahok" Tjahaja Purnama set Rp 3.35 million (US$257) per month as the 2017 provincial minimum wage for the capital's workers on Thursday.

The figure is eight percent higher than this year's wage of Rp 3.1 million but lower than workers' demands of Rp 3.83 million per month.

"I have signed the [new] minimum wage," he told journalists at City Hall, adding that the figure followed the 2015 government regulation on wages that took effect last year.

The figure was also in accordance with the wage suggested by employers and the city administration discussed in the city's wage committee, which comprises city administrators, employers and employees from Jakarta.

Unlike the previous formula in setting up the wage, which considered the basic cost of living (KHL), the regulation stipulates the wage increase based on a given year'€™s inflation and the gross domestic product (GDP) growth rate.

Employers and workers had different proposals of next year's wage. Workers made demands to the city administration to set the wage 23 percent higher than this year to Rp 3.83 million based on the KHL survey in September of Rp 3.49 million.

Ahok said he actually preferred to use the provincial wage formula based on KHL, however, his proposal to the Manpower and Transmigration Ministry was rejected. Therefore, he expected workers not to stage protests over the new wage that had been set.

"We have to follow the regulation," he said.

Ahok starts his election campaign leave on Friday, leaving his duties to acting governor Sumarsono. (rin)

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