W

est Java Governor Ahmad Heryawan set new minimum wages for all companies and industries in Bekasi following strikes by thousands of workers in recent days.

The new decree on wages was issued after an agreement was reached among workers’ unions, the Indonesian Employers’ Association (Apindo) and the Bekasi regency administration on Friday evening.

“The dispute over minimum wages is over with the issuance of the new decree,” West Java provincial administration spokesman Ruddy Gandakusumah said in Bandung on Saturday.

Under Decree No. 561/2012, signed on Saturday morning, the minimum wages in Bekasi regency are set at Rp 1,491,000 for workers in Group I, Rp 1,715,000 for Group II and Rp 1,849,000 for Group III.

On Friday, workers’ unions in Bekasi showed their power by bringing around 3,000 factories in the industrial center to a screeching halt in protest of a court ruling annulling the governor’s previous decree on minimum wage increases.

Tens of thousands of Bekasi workers took their anger to the streets and blocked the Jakarta-Cikarang toll road’s access to Bekasi from Kilometer 21 to Kilometer 26, paralyzing economic activity in the region.

The new decree replaced Decree No. 561/2011 issued on Nov. 21 that set the minimum wages in Bekasi’s regency and municipality. Under that decree, wages were set at Rp 1,491,866 for Group I, Rp 1,715,645 for Group II and Rp 1,849,913 for Group III.

The earlier decree, however, was rejected by Apindo, which later filed a lawsuit in the Bandung State Administrative Court that argued the wages were too high.

At the end of trial on Jan. 26, the panel of judges revoked the administration’s decree. Presiding judge Disiplin F. Manao then ordered the administration to issue a new decree based on a consensual wage agreement between businessmen and the unions.

In a meeting brokered by Coordinating Economic Minister Hatta Rajasa, it was agreed that all parties would withdraw their lawsuits and appeals in relation to the State Administrative Court decision.

 “All of the related parties will withdraw their lawsuits and appeals together, so as to be just,” Ruddy said.

The head of Apindo’s West Java office, Deddy Wijaya, said that the new decree on minimum wages was the best solution for all parties, including the workers and the public.

“All parties agreed to settle problems which were never touched earlier,” he said.

Deddy also welcomed the governor’s decision to issue the new decree as it would become a reference point for each company when setting wages for their workers this month.

“If it is not issued as soon as possible, there will be confusion, or even other conflicts, as the wages have to be paid urgently. The figures have been accepted by all parties, especially the labor unions,” he said.

Commenting on the appeal to be launched by the West Java provincial administration and workers, Deddy said that all parties have agreed to stop their respective legal actions.

“If there is an appeal, there will be a review while the wages have to be paid. But it can’t be executed as it will be based on the 2011 regulation. That’s why all parties agreed to end the legal efforts,” Deddy said.

Governor Heryawan agreed and said that his administration would withdraw its appeal against the administrative court’s verdict. “It will be filed next week,” he said.

If any company were to be incapable of meeting the minimum wages specified in the new decree, Heryawan will give leniency to it so a postponement proposal can be filed.

“But this is only for a company which is really unable to pay the minimum wages, as set in the governor’s decree,” he said.