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Workers protest new minimum-wage increase formula

Jakarta Post - October 28, 2015

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Jakarta – Hundreds of workers took part in a street rally in Jakarta on Wednesday, expressing their dissatisfaction at the newly announced government regulation on the calculation of minimum-wage increases.

Last Friday, President Joko "Jokowi" Widodo signed government regulation No. 78/2015 concerning wages. The regulation stipulates that minimum wage shall increase by the total percentage achieved by adding percentage inflation and percentage growth of gross domestic product (GDP) each fiscal year.

Under the new regulation, the minimum-wage increase this year would be about 10 percent, adding together the roughly 5 percent inflation and 5 percent GDP growth of this fiscal year.

The protesting workers, members of the Confederation of Indonesian Prosperous Labor Unions (KSBSI), gathered on Jl. Medan Merdeka Selatan, in front of the Antara news agency building before moving to Jl. Medan Merdeka Utara, in front of State Palace.

"How can we live a decent life if our wage increase is limited to 10 percent annually?" asked one of the demonstrators.

Thought the regulation has been signed, the Jakarta wage committee, for example, is yet to fully adopt the formula for calculating city minimum-wage increases. Instead, it continues to take into account the basic cost of living based on the prices of 84 basic commodities and daily needs of workers in the capital city.

The KSBSI demanded that the government revoke the new regulation, which is otherwise set to remain in place for 25 years.

Across town, a separate group of roughly 300 workers demonstrated in front of the Manpower Ministry on Jl. Gatot Subroto, South Jakarta, also to challenge the new government regulation. (bbn)

Source: http://www.thejakartapost.com/news/2015/10/28/workers-protest-new-minimum-wage-increase-formula.html.