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Thousands of workers rally against minimum wage exemption in Jakarta

Jakarta Globe - February 28, 2013

Lenny Tristia Tambun & Bayu Marhaenjati – Thousands of workers on Thursday gathered in the Hotel Indonesia traffic circle and at the State Palace to rally against the government's decision of granting companies exemption from having to pay the minimum wage set by regional governments.

President of the Confederation of the All Indonesia Workers Unions (KSPSI) Andi Gani Nena Wea said that the protesters have five demands, including asking the government to abolish minimum wage reprieve, low-wage policies and outsourcing.

They also called on the government to implement the Social Security Organizing Body (BPJS) Law, which requires all workers' insurance and pension schemes to be managed by a single entity, the BPJS, It will provide health insurance to all Indonesians, and expatriates who have worked here for at least six months. The new body is scheduled to be established by Jan. 1, 2014/

"We urge the governor to reject every request by the companies to postpone giving the minimum wage," Andi said. "Because if the requests are approved, the workers will suffer."

Some 492 companies in Jakarta have requested exemption. To date, 43 have obtained approval while 20 were denied. Jakarta's new monthly minimum wage of Rp 2.2 million ($227), implemented in January, is a 44 percent increase from the 2012 standard.

The protesters who rallied from the traffic circle to State Palace caused long traffic jams along Jalan Sudirman and Thamrin. Deputy director of Jakarta Police traffic division Adj. Sr. Comr. Wahyono advised commuters to avoid the areas where the protesters have gathered.

"To ease the traffic congestion along the roads [Sudirman-Thamrin], commuters should use alternative routes nearby heading to those roads," Wahyono said. "If there is escalating mass concentration, there will be traffic redirection."

The Jakarta police have deployed 13,235 officers to safeguard the rally in some places including Hotel Indonesia traffic circle, State Palace, House of Representatives and the Ministry of Manpower and Transmigration office.