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Workers demand wage rise after unions' survey findings
Jakarta Post - October 11, 2016
Having worked as a factory worker in East Jakarta for more than 10 years, the 44-year-old knows more than anyone that his Rp 3.1 million (US$239) monthly salary is barely enough for himself, his wife and their two children's livelihoods.
The city administration is expected to set the 2017 city minimum wage soon, where Nursahid, as well as other members of the Jakarta Labor Movement, want to see the minimum wage raised to Rp 3.83 million as proposed by the labor unions from the current Rp 3.1 million.
With a monthly house rent of Rp 600,000 and daily transportation costs of Rp 50,000 for himself and his children to go to school, Nursahid has placed high hopes on the wage increase.
"The Rp 3.1 million is not even my basic salary. It is the total amount I bring home every month to sustain my wife and children's survival," he told The Jakarta Post on Monday. "My only chance to get a raise is with an increased minimum wage."
A survey of the basic cost of living (KHL) carried out by the Jakarta Labor Movement, an organization comprising 21 workers unions in Jakarta, in September found that at the bare minimum, Rp 3.49 million per month was needed to live in the capital in 2016. And with calculating other components including inflation outlook and economic growth, the movement ultimately recommended that Rp 3.83 million should be set as the minimum wage.
The recommendation would be submitted to a Jakarta tripartite wage committee meeting representing the city administration, employers and workers that will be held at City Hall on Wednesday. The annual meeting determines the minimum wage every year.
For Mirah Sumirat, the Indonesian Workers Association (ASPEK) president, the fact that Jakarta had a lower minimum wage than its satellite cities including Bekasi and Karawang in West Java was unacceptable. Bekasi City's 2016 minimum wage is Rp 3.32 million, while the current minimum wage of Karawang is Rp 3.33 million.
She said as the capital city, Jakarta should have the highest minimum wage as it held a large role in the nation's economy.
"It clearly shows that the city administration and businesspeople have paid less attention to workers' conditions. The survey's result should play an important role in determining next year's minimum wage," he said.
However, the unions were aware the chances of having the KHL survey taken into consideration during the committee meeting was quite low as the controversial Government Regulation (PP) No. 78/2015 on minimum wage increases had replaced the survey's formula with the fiscal year's inflation and gross domestic product (GDP) growth rate as determining factors.
The controversial regulation has been strongly protested by workers for putting the state of the economy ahead of accommodating their basic needs.
Jakarta Manpower and Transmigration Agency head Priyono said as the government regulation no longer used the survey officially to determine the minimum wage, it was unlikely that the committee meeting would take it into consideration.
He said the labor unions should not worry too much and believed that the meeting could reach a middle ground between them and businesses.
The 2016 Jakarta minimum wage does not completely follow the regulation as the city also takes into account a basic cost-of-living survey of 84 basic commodities and other daily needs of workers.
However, Priyono added that this was the case because the regulation was issued after the administration set the 2016 minimum wage. "I don't think it will happen again this year," he said.
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