Nurni Sulaiman, Balikpapan – Up to 3,000 forestry workers went on strike in Samarinda, East Kalimantan, on Tuesday, demanding the government raise the monthly provincial wage by at least 30 percent to compensate for rising fuel and basic commodity prices.

While the demonstrators occupied the governor's office and the provincial legislature building, most police personnel and fire engines were deployed to put out a flash fire which razed a densely populated slum housing in the city.

The demonstrators, mostly from the Federation of All-Indonesian Wood and Forestry Workers Union (Kahutindo) and the Confederation of Indonesian Prosperous Labor Union (KSBSI), said they would stay at the two buildings until the governor increased the provincial minimum wage from the current Rp 815,000 (US$88) to Rp 1.3 million.

"We will continue to occupy the governor's office and the legislative council building until a dialogue with employers and the government is held and the provincial minimum wage is revised," said the chairman of the provincial chapter of Kahutindo, Jumransyah.

He said the workers' purchasing power weakened despite a small wage rise in January. The increase was insignificant. Purchasing power decreased by the rising prices in May by 28 percent of fuel and up to 40 percent of basic commodities.

"How can we survive the economic hardship while the minimum physical need set by the National Statistics' Bureau (BPS) in the province has reached Rp 1.389,000?

"The government should not take employers' side. This condition could incite workers to commit anarchistic actions to express their frustration," he said.

Both acting governor Tarmidzi A. Karim and the provincial manpower and transmigration office were not in their office.

The police and the municipal administration were unable to break the traffic jam along the Jl Gajah Mada street and other main streets in the city because they were deployed to handle the fire.

The demonstrators threatened to spend the night at the two main buildings until the demands were met, saying they could not go back home without any gain from the employers and the government.

Chief councillor Herman Agussalim pledged that the provincial legislature would invite the governor to revise the gubernatorial decree on the provincial minimum wage, saying legislators would join the labor rally if their demand was not met by the provincial government.

The industrial strike has caused a number of forestry and plywood companies in Samarinda such as PT Kalamur, PT Melapi Timber, PT Kalamur and PT Tirta Mahakam to stop their operations.

The protesters dispersed the following day after agreeing to a 9.16 percent increase instead.