Jakarta Minimum Wage 2018 at Rp3.64mn; Anies Promise Food Subsidy

TEMPO.CO, Jakarta - The Government of Jakarta decided that the provincial minimum wage for 2018 is set at Rp3,648,035 per month. This figure follows the calculation that the businesses group proposed during the discussion.

In the minimum wage discussion, businesses representatives and labor representatives proposed for different figures. The Wage Council representative from the employers' side proposed for a minimum wage of Rp3,648,035. Meawhile, labor representatives proposed Rp3,917,398 that they deemed more suitable to finance workers' daily needs.

To compensate the workers, Jakarta Governor Anies Baswedan promised to provide food subsidies for workers starting next year with an amount of Rp685 billion.

"We will lower their living costs by (providing) subsidy assistance," Anies said at the City Hall, Wednesday, November 1.

Read also: Workers Demand Jakarta Minimum Wage Raise to Rp3.9 mn

According to Anies, although the minimum wage increase amount is not what workers' demanded, the government will try to reduce their expenditures. In addition to the food subsidy, the government plans to give workers cards to ride Transjakarta bus for free.

He said the 2018 wage was determined by referring to several variables including the September-to-September inflation rate of 3.2 percent and the gross domestic growth of 4.9 percent.

"I hope everyone can accept this Rp313,035 increase or 8.71 percent from 2017's minimum wage of Rp3,335,000," he said.

Member of the Wage Council's worker's representatives, Jayadi, is disappointed with the government's decision. He said that the new wage is not enough, and doesn’t take into account the increasing costs of living.

According to Jayadi, rent, transportation, and electricity bills have increased.

"Apparently, in deciding the minimum wage, the new governor cannot detach from Government Regulation No.78/2015," he lamented.

CHITRA PARAMAESTI