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Jakarta Post

SMEs to be exempt from minimum wage obligation

  • Hans David Tampubolon

    The Jakarta Post

Jakarta   /   Tue, November 13 2012   /  08:04 am

The government plans to be lenient with small and medium enterprises (SMEs) by not insisting outright that they pay their workers the new minimum wage.

“SME businesses can propose a postponement if they feel the new minimum wage is too much of a burden,” Manpower and Transmigration Minister Muhaimin Iskandar told reporters after a coordination meeting on labor at the Office of the Coordinating Economic Minister on Monday.

“The authorities will then audit SME businesses that propose a postponement. An audit is needed to confirm whether they can comply with the new minimum wage or not,” he added.

Workers represented by various labor unions, businesses and regional administrations throughout the archipelago are currently deliberating a new minimum wage in each province for next year.

Workers have demanded a raise of between 30 and 50 percent for the mini...