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Jakarta Post

City approves minimum wage delay for 40 firms

  • Sita W. Dewi

    The Jakarta Post

Jakarta   /   Tue, March 5 2013   /  12:12 pm

Jakarta Manpower Agency head Deded Sukandar said on Monday that the agency had 40 allowed financially constrained companies to delay the implementation of the 2013 regional minimum wage.

According to the agency, at least 360 companies operating in Jakarta had sought approval from the city administration to postpone the implementation of the new minimum wage. “[The agency] has approved requests from 40 companies, mostly labor-intensive businesses, while the assessment of seven other companies is ongoing,” Deded told The Jakarta Post.

At the beginning of his tenure as governor, Governor Joko “Jokowi” Widodo raised the minimum wage to Rp 2.2 million (US$226.69) per month from Rp 1.5 million. The policy pleased labor unions but left businesspeople concerned that the 44 percent increase would affect their operational costs.

Hundreds of workers staged a protest ag...