Thursday, 19 March 2015


The Government had approved request for suspension of Minimum Wages 2015 by 346 companies in Indonesia. the number of rejected applicant were 47 companies of 418 applying companies. Based on data of observation 18 companies withdraw their application and stated they were willing to pay minimum wages 2015 while 3 companies had their application form returned as they were not qualified. The number of companies who had approval increased against 2014 of which only 315 of 414 companies had their applications approved.

The Minister of Labor Hanif Dhakiri stated in Jakarta of Tuesday (24/2) he could understand worker’s demand for wages increase due to oil price increase. But Hanif said, supposedly the wages increase was synchronized with worker’s performance. Hanif stated that he would plead workers to increase incentives like transportation money and lunch allowance for workers according to their respective capability. The Minister expected the Bipatrit forum could run more effectively. Hamid said that company might posy deficit of workers constantly demand wages increase.

The solution be by facilitating dwelling places for workers which were located near the place where they worked so the could save on transportation money. However Hamid sait that such was only a proposition and not being discussed in detail. The proposition must still be coordinate with related parties. The Minister pled all stakeholders in the labor sector not to concentrate only on wages.

Minister Hanif said that the demand to increase Minimum Wages (UMP) was still within reason with increase of productivity. Employers of the industry naturally wish to increase UMP the reasonable was accompanied by increased productivity. Laborers demand was expected not to pose as obstacle for Indonesia to drum up investors to invest in Indonesia. to many investors had run away from Indonesia already in search of friendlier investment climate.

He underscored further that the Government was constantly striving to improve worker’s welfare in many ways and scheme up working program for workers. The Minister also would persuade strong companies would develop and promote worker’s welfare. On the other hand workers must also understand that not all companies were the same in terms of financial capacity.

Meanwhile the Association of Indonesian Businessmen (Apindo) rated that workers were getting wages by the rule. Chairman of Public Policy Division of Apindo, Anthony Hilman that as so many companies were having approval of suspension of wages increase workers were being more tolerant. The request for suspension of increasing salary must have workers’ approval in accordance with Ministrial Decree No. 231/MEN/2003 on the Procedure of Suspending Execution of Salary Increase.

He saw that workers realized that the company where he worked had poor financial capacity so they tolerate delay of salary increase. Companies whose request was not approved by the Government would not have workers’ approval. He said that the Government would be extra careful about approving suspension of wages increase. A wrong decision might trigger unrest one day. (SS) 

Business News - February 27, 2015

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