Tangerang – The Greater Tangerang Workers Alliance will set up posts where employees can report if their companies are not obeying a gubernatorial decree on Banten's new minimum wage.

The posts will also provide legal assistance for workers whose companies fail to implement the wage decree, which until Wednesday was being contested by the Indonesian Employers Association (Apindo).

Banten's minimum wage has been set at Rp 1,527,150 ($170), up from Rp 1,379,000. But there are concerns that not all companies will abide by the ruling.

Koswara, a coordinator for the labor group, said a clause in an agreement with employers on Wednesday allowing companies to delay implementing the wage increase if they were financially unable was ripe for abuse.

"We heard that many companies have said they are not yet able to comply and have ignored the decree from the Banten governor," he said.

He said his group would set up 25 posts to field complaints. Tangerang district will have 13 posts, the city of Tangerang 10 and South Tangerang two.

The agreement that was reached on Wednesday between the labor unions and Apindo in a meeting mediated by the Manpower and Transmigration Ministry prevented a massive and crippling labor strike planned for today.

Muhaimin Iskandar, the manpower minister, said companies should abide by the agreement. He added that if the two sides could work together, it would increase productivity.

According to ministry data, there are about 11,000 companies across the country that have struck wage deals with unions. Muhaimin said improved welfare for workers would translate into increased productivity and improved profits for the companies.

The authorities are not taking any chances. Sr. Comr. Rikwanto, a spokesman for the Jakarta Police, which has jurisdiction over Tangerang, said they were ready to handle any labor protests.

"Learning from the labor protests in Bekasi, the Jakarta Police will make every efforts to prevent similar protests from taking place in Tangerang," he said.

In Bekasi, workers last week protesting against efforts to lower a planned wage increase blocked a busy toll road for a day, causing congestion and barring access to industrial zones.

Rikwanto said the police were ready to deal with protests, and warned people that officers would take action against anyone disrupting public order.