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Kadin Approves New Minimum Wage

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Editor

28 October 2016 19:12 WIB

Labors demanding National Minimum Wage. ANTARA/Wahyu Putro A

TEMPO.CO, Jakarta - Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan Roeslani positively welcomed Jakarta Governor Basuki Ahok “Tjahaja” Purnama’s decision to set the 2017 Jakarta minimum wage at Rp3.35 million (US$257). He added that the increase in the minimum wage from Rp3.1 million (US$238) would not burden employers.

“It’s not burdening. It’s in accordance with the formula, right? If so, then it’s good. I have talked to my colleagues that it’s good,” Rosan said in Jakarta on Friday, October 28, 2016.

According to him, despite being protested by workers for being too low, the Jakarta administration will compensate the minimum wage by providing various subsidies.

Earlier, Ahok set the 2017 Jakarta minimum wagee at Rp3.35 million, based on a formula set forth in Government Regulation No. 78/2015. However, the amount of the minimum wage was not as much as workers expected.

Workers had demanded that regents, mayors, and governors increase the minimum wage by at least 25 percent or Rp650,000 (US$50). Workers had threatened to launch a national strike if the increase of the minimum wage was set based on the regulation.

ANGELINA ANJAR SAWITRI



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