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Riau Islands governor signs decree on new minimum wage

Source
Jakarta Post - December 17, 2012

Fadli, Batam – After days of delay due to health concerns, Riau Islands Governor Muhammad Sani has officially signed a decree for the 2013 Batam minimum wage of Rp 2,040,000 (US$211.51).

Riau Islands administration spokesman Riono said Monday that the new minimum wage, a 45 percent increase from last year's Rp 1.4 million, would come into effect on Jan. 1 next year.

He said the provincial administration had delayed the announcement of the minimum wage as Governor Sani was undergoing medical treatment in Germany. "We only made the public announcement on Sunday, even though the decree was signed on Dec. 6," he said.

Riono added that the administration was ready should any company file a lawsuit to challenge the new wage. "The decision on the new minimum wage was made following thorough consideration [of all factors]," he said.

Riau's Indonesian Chamber of Commerce and Industry (Kadin) and Indonesian Employers Association (Apindo) had previously said that 150 small-scale factories had filed proposals for the postponement of the new pay raises. Kadin and Apindo are ready to file a lawsuit against the 2013 minimum wage.

In the same decree, Sani also set a minimum wage for other regencies and municipalities in Riau Islands. The administration set the minimum wage in Bintan at Rp 1.9 million, up from Rp 1.22 million; while Tanjung Pinang's pay was set at Rp 1.37 million, up from Rp 1.01 million; and Natuna's minimum wage was set at Rp 1.37 million, up from last year's Rp 1.11 million. (lfr)

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