Industry Minister MS Hidayat said on Friday that he supported a plan of top businesspeople to challenge Jakarta Governor Joko “Jokowi” Widodo’s decision to set Jakarta’s 2013 provincial minimum wage at Rp 2.2 million (US$228).
“I have been informed by Apindo [Indonesian Employers Association] that it will file a lawsuit with the PTUN [state administrative court]. As long as it utilizes legal avenues, I support it,” Hidayat told reporters at Halim Perdanakusuma Air Force base in East Jakarta.
Hidayat was among President Susilo Bambang Yudhoyono’s entourage that just arrived from Islamabad, Pakistan, to attend the D-8 Summit.
“Businesspeople have said that their aspiration was not accommodated by the decision on the minimum wage. Sofjan phoned me about the matter,” he said, referring to Apindo chairman Sofjan Wanandi.
“Apindo is afraid that its members will have to lay off workers,” he added.
Jokowi announced Tuesday that the 2013 provincial minimum wage had been set at Rp 2.2 million, a 44 percent increase from this year’s Rp 1.5 million.
Although the increase was slightly lower than the recommendation of Rp 2,216,243 by the City Remuneration Board, it has sparked controversy. Businesspeople have said that they considered the minimum wage too high and that it would significantly affect their cash flow…
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A 44 percent rise in the Jakarta minimum wage has prompted a major employer organization to warn of mass layoffs as companies grapple with the increased production costs, and led analysts to suggest that a major increase in productivity was needed to justify the hike. Employer groups have also expressed fears that the new Jakarta … Continue reading »
MINIMUM-WAGE laws have a long history and enduring political appeal. New Zealand pioneered the first national pay floor in 1894. America’s federal minimum wage dates from 1938. Most countries now have a statutory pay floor—and the ranks are still swelling. Even Germany, one of the few big countries without, may at last introduce a national … Continue reading »