Suryani Ika Sari, Jakarta – The debate on the Jakarta provincial minimum wage (UMP) continues. In a meeting which was held by the Provincial Council for Wage Affairs this afternoon, Thursday November 11, employers and the Jakarta provincial government agreed to a UMP of 711,000 rupiah per month. As a result of this decision, trade unions walked out of the meeting and held a demonstration at the Jakarta Municipal Building.
The head of the labour division from the People’s Democratic Party (PRD), Lukman Hakim, said he regretted the decision taken by employers and the government saying that an minimum wage of 711,000 per month is insufficient in a situation where the estimated minimum cost of living per month in Jakarta is 759,953 rupiah. He said that the decision is not in accordance with the decree by the minister for labour and transmigration Number B601/MEN/PHI/PJK/VII/2004 dated June 16, 2004, which states that the determination of the 2005 minimum wage must be in accordance with the cost of living. “We are asking the governor not to sign the UMP which has been put forward by employers and the government. It is not in accordance with the ministerial decree”, said Hakim.
The PRD is also urging the Jakarta provincial government to immediately abolish “invisible” costs of 30 per cent. They believe that these invisible costs or illegal payments which are made each month by companies could be used instead to increase employee’s wages.
When met by Tempo at the Jakarta Municipal Building earlier this afternoon, the head of the Jakarta Office for Labour and Transmigration, Ali Zubeir, denied that trade unions had walked out of the meeting. “They didn’t walk-out, they’re still there. They just haven’t said yes or no [to the decision]”, he said.
Zubeir also denied that the UMP is not based on the ministerial decree. “We have not contravened the decree. A [closer] examination is needed [which would show] that there is no obligation [for compliance], but [rather] a expectation that the 2005 minimum wage level is the same as the respective regional minimum cost of living. But we have not violated [the decree]”, explained Zubeir.
According to Zubeir, the minimum wage they set is already in accordance with the Concept of a Reasonable Wage and the cost of living in Jakarta. “You need to know that by comparison the regional minimum wage in Jakarta is the highest in the country”, said Zubeir. Furthermore he explained, the lowest UMP is set for workers who have worked for a period of less than one year. So he said, if they work for more than a year then it can be negotiated.
Zubeir said that the new UMP will come into force on January 2005. “We set it two months beforehand so that there is a grace period for companies who are unable to pay it”, he said. At the moment they are waiting on the governor’s signature. “We will be reporting it to the governor immediately, we are only waiting on his signature”, said Zubeir.
The governor of Jakarta meanwhile, who Tempo met with at the City Municipal Building, said that he did not wish to intervene in the matter saying that in this case his only role is one of a facilitator. Governor Sutiyoso also said he hoped that in making a decision on the UMP that a compromise can be reached between the respective parties so that neither side feels they have lost or won. “Leave them to discuss it first, I can’t intervene”, explained Sutiyoso.
When asked about the calls by trade unions for him not to sign decision on the UMP, Sutiyoso said that he will first check with the office of labour affairs. “Yeah yeah, I can delay [signing] it, I’ll check with the office of labour affairs first”, he said.
[Translated by James Balowski.]
