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Jakarta Post

Jakarta to raise minimum wage to Rp 3.9 million

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, October 23, 2018   /   05:30 pm
Jakarta to raise minimum wage to Rp 3.9 million The Workers Federation staged a rally demanding an increase in the minimum wage in front of City Hall. (kompas.com/Jessi Carina )

The city will raise its minimum wage by 8.03 percent, as it has been mandated by a government regulation.

Jakarta wage council member Sarman Simanjorang said on Tuesday the wage would increase from Rp 3.6 million (US$237) at present to above Rp 3.9 million next year. 

The increase was in accordance with Government Regulation No. 78/2015 on wages. 

"Based on the calculation, Jakarta's minimum wage will be Rp 3,940,972," he said as quoted by kompas.com on Tuesday. 

The minimum wage amount, Sarman added, would be enough to fulfill an inexperienced worker's needs. The annual raise is aimed at ensuring the well-being of newcomers in the world of work. 

Sarman suggested worker unions not demand too much on the minimum wage raise. 

"Please don't demand a raise beyond employers' capabilities. The regulation has fairly regulated the raise and is positive for both employers and employees," he said. 

Manpower Minister Hanif Dhakiri said the 8.03 percent increase was decided on based on Statistics Indonesia's data, which states this year's inflation stands at 2.88 percent and economic development at 5.15 percent. 

"If those figures are combined, it results in an 8.03 percent [raise in the minimum wage]," Hanif said. (vla)