Govt to Issue Presidential Instruction on Labor Wage
24 August 2013 17:00 WIB
TEMPO.CO, Jakarta - Coordinating Minister for the Economy, Hatta Radjasa, said that the government is set to issue a Presidential Instruction regulating labor wage. Hatta said that the instruction would serve as a guideline to decide the amount of wage for labors.
"The government will issue an instruction for labor wage," Hatta said during a press conference at Mulia Hotel, Friday, August 23, 2013, adding that it serves as a guideline for regents, mayors, or governors in determining the labors' minimum wage.
Hatta explained that the minimum wage must be determined based on the standard cost of living (KHL) as well as other factors such as inflation and economic growth.
Hatta also added that the wage should have been discussed by the National Wage Council (DPN), which consists of three parties. "However, what happened was, many think that wage must be determined by the Governor," he said, saying that it was due to the misinterpretation of laws. "It is the governor who has to determine the minimum wage based on the recommendation from the DPN," he said.
NINIS CHAIRUNNISA
