Lenny Tristia Tambun – Jakarta Governor Joko Widodo's decision to only allow for a slight increase in terms of the capital city's minimum wage regulation prompted dissatisfaction among labor unions, who over most of last week rallied for the city government to approve a monthly minimum wage of Rp 3.7 million ($325).

Confederation of Indonesian Workers (KSPI) president Said Iqbal said Joko did not fully understand the elements used to determine the components of the decent living index (KHL) in the calculation of the minimum wage.

"The government used components determining a decent living in 2013, but set the minimum wage for 2014 at Rp 2.4 million," he said in Jakarta on Monday, adding that the Rp 3.7 million demanded by the labor union had been based on its calculations for 2014.

Responding to complaints and protests by workers, Joko said the wage increase had not been significant because workers in the capital are also supported by the Jakarta Health Card (KJS) and Jakarta Smart Card (KJP) programs, which gives them free access to health care and education.

He emphasized that such programs are not offered in other regions, which may result in other regions having a higher minimum wage compared to the capital. As a result, Joko called on workers to consider the different circumstances and accept his policy.

"Do note the difference [between Jakarta] and other regions. Here, there are public services offered for free, such as the KJP and KJS. That alone will already cut down their monthly spending," Joko said at City Hall on Monday.

He highlighted the fact that the local government was also making extra efforts in providing workers with decent residential space by means of fully furnished low-cost housing.

In addition to that, he said the city government is also planning to acquire thousands of busses in a bid to improve public transportation, which will offer a low-cost alternative.

"Those two elements were included in the calculation of the components of a decent living. We intend to provide them [with such services] in order to reduce their living expenses," Joko said.

"Last year, I increased their minimum wage by nearly 50 percent because there had been a deficit and because it didn't meet the decent living standard. If I were to increase the wage to Rp 3.7 million, investors would leave Jakarta."

Joko said protest against his minimum wage policy was something he would have to face in his efforts to balance the needs of businesses and workers.