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Jakarta Post

Yogya minimum wage to increase by 10%

  • Bambang Muryanto and Jon Afrizal

    The Jakarta Post

Yogyakarta/Jambi   /   Thu, November 14, 2013   /  08:27 am

Yogyakarta Governor Sri Sultan Hamengkubuwo X said that the minimum wage in the province (UMP) 2014 would be increased by around 10 percent compared to last year.

Speaking after a meeting with the mayor and regents at the gubernatorial office compound in Kepatihan on Wednesday, Sultan said that the new minimum wage of the province'€™s four regencies and municipality were based on the proposals filed by the remuneration board.

The board comprises representatives of the local administration, the Indonesian Employers Association (Apindo) and the Indonesian Workers Union (SPSI).

According to Sultan, the minimum wage for Yogyakarta city was increased from Rp 1,065,247 (US$93) to Rp 1,173,300; Sleman'€˜s from Rp 1,026,181 to Rp 1,127,000; Bantul'€˜s from Rp 993,484 to Rp 1,125,500; Kulonprogo'€™s from Rp 954,339 to Rp 1,069,000 and Gunungkidul'€™s from Rp 947,114 to Rp 988,500.

Sultan also said that the approval was based on many considerations including an increase in the prices of goods as well as challenges encountered by employers such as the increase in the dollar value that caused increase in the prices of imported raw materials.

Sleman Regent Sri Purnomo said that his office would establish a post for companies that objected to the decision.

Meanwhile, Regional secretary of the Independent Workers Union Federation (FSPM), Ambhara Ika Inang Kartika, said that the increase in the wage in Yogyakarta was not yet ideal

'€œWe expect Yogyakarta to follow Jakarta by applying sectoral minimum wage that every sector also has its own standard,'€ Ambhara said.

Separately in Jambi, Governor Hasan Basri Agus told the Indonesian Prosperous Workers Union (SBSI) that the minimum wage for the region could not be increased because the governor decree on the matter had already been issued.

'€œI told SBSI that it was impossible to increase the wage because the decree has been issued. It'€™s a matter of credibility of the governor decree,'€ Hasan said after receiving SBSI representatives for a hearing to ask the governor to increase the Jambi UMP into Rp 1.6 million a month. '€œI am asking for an understanding. The wage was based on the proposal made by the wage council,'€ she told SBSI representatives at a hearing on Wednesday.

A number of agreements were made during the hearing including on the establishment of regency/municipality remuneration board across the province. The governor also agreed to hold a hearing with head of state-owned insurance company Jamsostek to discuss about the insurance payment for workers.

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