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Apindo to file lawsuit against Anies’ minimum wage hike
Indonesian Employers Association (Apindo) chairman Hariyadi Sukamdani said on Monday that the organization would file a lawsuit against Anies’ decision to increase the provincial minimum wage by 5.1 percent, rather than the 0.8 percent designated by the central government.
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Jakarta Governor Anies Baswedan speaks at a press conference on Jan. 9, 2017. (JP/Wienda Parwitasari)
T
he Indonesian Employers Association (Apindo) plans to challenge Jakarta Governor Anies Baswedan’s decision to increase the provincial minimum wage by a greater amount than stipulated by the central government.
Apindo chairman Hariyadi Sukamdani said in a virtual press conference on Monday that the organization would file a lawsuit opposing the governor’s decision to increase the provincial minimum wage by 5.1 percent, rather than the prescribed 0.8 percent.
Hariyadi said that once the gubernatorial regulation governing the change was issued, Apindo would file the suit with the Jakarta State Administrative Court (PTUN).
“We’re waiting for the gubernatorial regulation. Once it’s announced, we will move ahead with the process,” he said in the press briefing.
Apindo will work with the Jakarta chapter of the Indonesian Chamber of Commerce (Kadin) to file the lawsuit.
Late last week, Anies moved to increase the provincial minimum wage in Jakarta by 5.1 percent, saying workers in the capital deserved better.
“Workers deserve this 5.1 percent increase, but we are also convinced that this won’t be too burdensome for employers,” Anies said, as quoted by kompas.com.
Anies added that the increase could, in fact, stimulate economic growth in the capital, as the wage bump could stimulate consumer spending.
“The economy could grow faster,” said Anies, who is expected to step down next year.
Apindo has sought to constrain the minimum wage for next year by demanding that any increase be based on the Job Creation Law rather than on the demands of labor unions.
The organization said in November that in line with the jobs law, the increase would be based on regional economic growth or inflation and, as such, would be below the double-digit rise demanded by unions.
