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abor unions in North Sumatra have opposed the provincial administration’s decision to raise the 2013 provincial minimum wage by only Rp 105,000 (US$10.92), or from Rp 1.2 million to Rp 1,305,000 per month.

The workers, affiliated with various labor unions, threatened to hold a mass rally to protest the amount, saying it was far from their expectations of at least Rp 2 million.

North Sumatra Labor Council president Pahala Napitupulu said that raising the minimum wage to only Rp 1,305,000 for 2013 was inhumane because it would not cover workers’ daily living needs.

According to Pahala, the wage hike is regarded more as an adjustment and would not improve workers’ welfare because the government only adjusted the wage hike in accordance with the current prices of basic necessities.

Pahala predicted that prices of basic needs would further rise next year, while the 2013 wage adjustment was based on the current prices of basic necessities.

“This isn’t fair because in terms of value, the minimum wage will be increased but workers’ buying power will further decrease. The moment they receive the increased wage next year, the prices of basic necessities will immediately rise,” Pahala told The Jakarta Post on Tuesday.

Last week, North Sumatra interim governor Gatot Pujo Nugroho announced the 2013 minimum monthly wage, which will be effective as of January.

Pahala said his council was currently coordinating with a number of labor unions to rally together against the set minimum wage.

“We are planning to hold a mass rally in a number of areas in North Sumatra to oppose the 2013 minimum wage. We will paralyze industries until the government meets the demand of workers to raise the 2013 minimum wage to between Rp 2 million and Rp 2.5 million per month,” said Pahala, adding that the protest would be held soon.

Pahala said workers would pressure Gatot to revise the 2013 minimum wage. He also said the wage hike did not reflect current conditions and indicated a conspiracy within the North Sumatra Remuneration Council.

Meanwhile, North Sumatra Manpower and Transmigration Office head Bukit Tambunan said the new minimum wage was the maximum based on the decent living standards (KHL), gross regional product and inflation estimates.

“The amount of 2013 minimum wage has been determined from calculations by taking into account employers’ capacity and workers’ interests,” he said.

The North Sumatra branch of the Indonesian Employers Association’s (Apindo) secretary, Laksamana Adiyaksa, said employers were also burdened by the increase in the minimum wage because it exceeded the amount recommended by the North Sumatra Remuneration Council.

“The council recommended the 2013 minimum wage increase be around 7.9 percent, but the provincial administration raised it 8.5 percent. This is a burden for employers, but the decision must be implemented,” Laksamana told the Post on Tuesday.

In response to the demand for at least Rp 2 million as the minimum wage, Laksamana said it was relative as the 2013 minimum wage had been calculated based on the KHL.