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Jakarta Post

Why should Indonesia adopt hourly wage scheme?

  • Rangga Widigda


Jakarta   /   Fri, January 31, 2020   /  10:09 am
Why should Indonesia adopt hourly wage scheme? Workers labor in a cigarette factory in Kudus, Central Java. (Antara/Yusuf Nugroho)

One of the most debated items in the omnibus bill on job creation that is currently being drafted by the government is the hourly wage scheme in which wages are paid to employees on an hourly calculation. The hourly wage scheme is welcomed by employers, but has met massive protests from workers. The Indonesian Employers Association (Apindo) supports the implementation of an hourly wage scheme in Indonesia. Apindo chairman Hariyadi Sukamdani said the implementation of the hourly wage scheme would not reduce the number of workers. On the contrary, he said he believed this scheme would have a positive impact, such as expanding job opportunities for workers. However, the labor union strongly rejects its implementation. The chairman of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal, offered several reasons why the union rejected such a wage scheme. The reasons are, a...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.