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Greater Jakarta: Jakarta sets minimum wage of Rp 3.6m
The city administration reached a decision on Wednesday to set the provincial minimum wage at Rp 3
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T
he city administration reached a decision on Wednesday to set the provincial minimum wage at Rp 3.6 million (US$265).
The figure is 8 percent higher than last year’s minimum wage of Rp 3.3 million.
“Workers will enjoy the raise, while businessmen will not bear a heavy burden given recent sluggish economic conditions,” Jakarta Governor Anies Baswedan said on Wednesday.
He added that calculations for the new minimum wage were based on year-on-year inflation as of September — which reached 3.2 percent, with a gross domestic product (GDP) growth rate of 4.99 percent — as mandated by Government Regulation No. 78/2015 on wages.
Labor unions previously demanded a minimum wage of Rp 3.9 million based on calculations that took into account the basic cost of living (KHL), while businesses asked for Rp 3.6 million based on Government Regulation No. 78/2015.
“We hope all parties can accept this, and we believe that amid sluggish economy growth, [the new minimum wage] can help both workers and businessmen keep the wheels of economy moving,” Anies added.
