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Jakarta Post

Employers to file suit against wage increase

  • Linda Yulisman

    The Jakarta Post

Jakarta   /   Fri, November 30 2012   /  10:45 am

A number of business associations from several regions are preparing to file a lawsuit against the regulation governing provincial minimum wages for 2013 at administrative courts and the Constitutional Court, the Indonesian Employers Association (Apindo) says.

The associations included textile and footwear business associations, along with Apindo and Indonesian Chambers of Commerce and Industry (Kadin) chapters in Batam, Banten, East Kalimantan and Jakarta, Apindo chairman Sofjan Wanandi said on Thursday.

This action was being taken because local firms could not cope with next year’s provincial wage increases, which could amount to more than 40 percent, he added.

At least 25 provinces recently set their respective minimum wages for next year, with Jakarta recording the highest increase of 44 percent to Rp 2.2 million (US$229.17), from Rp 1.5 million this year.