JAKARTA. The meeting of Jakarta Wages Board on formulating 2017 Jakarta minimum provincial wages (UMP) on Wednesday (12/10) failed to reach agreement between labors and employers representatives.

Indonesia Labors Unions Association (Aspek Indonesia), which represents labors in the meeting suggested a 23.5% of increase in Jakarta UMP from Rp 3.1 million per month in 2016 to Rp 3.83 million per month in 2017.

President of Aspek Mirah Sumirat claimed that the estimation have included the Proper Life Needs (KHL) standard for Jakarta in 2016 that amounted to Rp 3.49 million. “Law No13/2003 on Manpower clearly stipulates that the UMP formulation has to be in accordance with the KHL standard”, Mirah claimed.

Meanwhile, the representatives of employers insisted that the estimation for UMP should refer to Government Regulation No 78/2015 on Wages. Member of Jakarta Wages Board Sarman Simanjorang, based on the regulation, the estimation of UMP should include minimum wages in current year, national inflation rate in the current year, and the Gross Domestic Product or GDP growth in current year.

Sarman claimed that under the scheme minimum wages for Jakarta in 2017 will increase by 8% to Rp 3.35 million.

The next three-party meeting between the representatives of labors, employers, and government will be held on Wednesday (19/10). According to Sarman, the final decision on the amount of minimum wages will be on Jakarta provincial governance. He expected that Governor of Jakarta Basuki Tjahaja Purnama will make the decision before he takes campaign leaves at the end of October.

Refering to existing regulation

Governor of Jakarta Basuki Tjahaja Purnama or Ahok said that Jakarta Provincial Governance should refer to the Government Regulation No 78/2015.

According to Ahok, the estimation that refers to Proper Life Needs (KHL) is not in line with the existing regulation. Aside of violating regulation, the estimation will not benefit labors, on the grounds that government will reduce living costs by providing subsidies.

“Your wages may decrease if you calculate wages based on KHL”, Ahok said.

According to Ahok, Jakarta provincial governance will provide low cost staple foods for labors. In the future, the local government will provide special subsidy card for labors.

(Muhammad Farid/Translator)

Editor: Dupla Kartini