Andra Wisnu, Denpasar – Laborers gathered under the Bali chapter of the National Front for the Struggle of Indonesian Workers (FNPBI) rallied in Denpasar on Wednesday opposing a recent joint ministerial decree allowing companies to cap their wages.

Some 100 workers, mostly women, carried banners and yelled, "No to SKB-4 (in reference to the decree)! Yes to fuel price reduction!", while marching through the Bali Provincial Legislative Council building to the governor's office and Renon Square.

The decree, signed by Manpower and Transmigration Minister Erman Suparno, Trade Minister Mari Elka Pangestu, Industry Minister Fahmi Idris and Home Minister Mardiyanto on Friday, is expected to discourage local administrations from raising regional minimum wages beyond the capabilities of manufacturing firms.

Existing regulations give local administrations more authority in determining adjustments to the minimum wage, undercutting companies whose financial resources may be at stake.

Laborers at the rally complained that companies may use the decree as leverage to cancel plans by local administrations to raise the minimum wage amidst an already dire economic situation in the wake of the US-led global financial crisis.

The decree would only destroy the lives of Indonesian laborers, said Ayu Pradewati, a rally coordinator.

"Food prices are rising, fuel is already high. How do they expect us to take care of our family when they're only paying us Rp 600,000 (US$55) a month?

"Not only that, but global crude oil prices are down now, so how come our fuel prices are still high? It's just too much," Pradewati said.

Ikhsan Tontowi, another rally coordinator, demanded the decree be revoked, calling it an "insult" to laborers across Indonesia.

"If our minimum wage increase is based on the national economic growth of 6 percent, then we would receive an average raise of just Rp 48,000," he said. "This is just not enough, not even close to being enough," he said.

The rally demanded the government slash export tariffs and raise import tariffs, specifically on consumable goods, and delay payments of national debts for further spending on social programs in order to raise the public's purchasing power.

It was the first rally opposing the decree in Indonesia, although other labor unions in cities such as Jakarta and Surakarta, Central Java, have already stated their plans to conduct bigger and louder rallies.

The government has stated that the decree was only a temporary measure to protect local economies against fallout from the global economic crisis, setting no official timetable for a cancellation of the decree.