TEMPO.CO, Jakarta - Bekasi district administration in West Java has set a minimum wage for 2017 at Rp3,530,438. The decision is based on government regulation No. 78/2015 on a 8.25 percent increase in minimum wage from the district’s previous rate of Rp3.3 million.

Bekasi district workforce services department head Effendi said that the minimum wage has been approved by West Java governor.

“The minimum wage [increase] will become effective in January 2017,” Effendy said on Wednesday.

He said that minimum wage increase was calculated based on the economic growth of 5.18 percent and 3.07 percent inflation rate, after which the Government came out with 8.25 percent rate.

“It’s [based on] the national calculation [methodology], the increase cannot get higher than 8.25 percent,” Effendi said.

Agus Setiawan, secretary of Indonesian Entrepreneurs’ Association (APINDO) Bekasi district chapter, said business owners have agreed to set respective minimum wage based on the government regulation. According to him, the indicators of wage increase had been clearly set: economic growth and inflation rate. “The pay matrix is already in place,” Agus said.

As such, Bekasi district’s minimum wage rate is higher than that of Jakarta with Rp3.3 million, and less than Bekasi City with Rp3.6 million.

ADI WARSONO