Entrepreneurs believed that the wage increase is not yet proportional to
the increase in productivity. This means that workers’ demand is not
proportional (linear) to their performance. Therefore, the Indonesian Employers
Association (Apindo), firmly rejected workers demand for wage increase of up to
50% after the subsidized fuel price hike. Chairman of Apindo, Sofjan Wanandi,
in Jakarta on Monday (June 24) said that increase Provincial Minimum Wage (UMP)
does not guarantee an increase in the productivity of workers.
According to sofjan, it is better it entrepreneurs add machines and
other advanced equipment rather than increasing the number of workers or
continue to fulfill demand of workers. Because based on experience, the wage
paid by employers is not proportional to the work produced of the company.
Related to workers demand to increase wage by 50%, sofjan said that he will
first discuss with the Remuneration Board and tripartite institutions. They
will decide next year, and this year, Apindo will continue to collect data and
conduct further survey. “It seems hard for us to raise wages up to 50%,
moreover their productivity is still not satisfactory”, Sofjan said.
Sofjan admitted that he was stuck with the government’s policy to
increase subsidized fuel price. He considered that the momentum to increase
subsidized fuel price is not right. First, the policy was decided in a
political year and when the US Dollar exchange rate is rising against the
rupiah. In addition, pressure of the workers union on employers to re increase
UMP is felt to make the position of employment increasingly cornered. Sofyan
complained that the workers pressured the government not to raise fuel price,
but those companies became the targets of anger of the workers.
Meanwhile, for the adjustment of price of nine basic commodities
(sembako), he said that entrepreneurs have committed to neutralize the price as
normally as possible. The rise in price of sembako will be adjusted to the
increase in public transport fares after the fuel price increase. However,
Apindo cannot guarantee that it can control fresh ingredients, such as
vegetables. Availability to sembako, which can be controlled are, amongst
others, industrial goods, noodles, sugar, cooking oil, and soybean. Sofjan
asked the government and the central bank to stabilize the Rupiah against the
Dollar to a maximum of Rp.9,700.
Sofjan also urged the government and the organization of Land
Transportation Owners (Organda) to soon determine public transport fares after
the fuel price increase. Organda proposed an increase in public transport fares
30% after the fuel price hike. The reason, according to sofjan, transportation
plays an important role for the smooth distribution of goods and services
traded by entrepreneurs. With the increase in public transport fares,
entrepreneurs will adjust the price of goods and services they traded. But,
sofjan guaranteed that although public transport fares will rise by 30%,
entrepreneurs will only adjust the maximum price at 5%.
Sofjan complained that drivers have been raising public transport fares,
even though there is no agreement between the government and Organda. He said
that currently there are a lot of drivers who raise rates at will. Until now,
he said, it is too long to wait for government to negotiate. These issues
should have been discussed before deciding on fare hike. He admitted that in
the past five years, Organda did not raise public transport fares. Thus, the
increase in fuel rates, he said, is the most appropriate moment to raise public
transport fares by 30%. “But, the increase should be within the bounds of
reasonableness”, he said. (E)
Business News - June 26,2013
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