Fadli, Batam – About 200 members of the All-Indonesia Federation of Workers Union in Batam demonstrated outside the Batam municipal office Thursday, demanding the city's minimum wage be equivalent to the standard costs of living.

The workers, coming from 12 companies operating in Batam, demanded a tripartite meeting between government, workers and employers to end the deadlock in labor talks and find a way for the mayor to set the minimum wage in line with the cost of living.

Batam's monthly minimum wage is currently set at Rp 960,000 (US$87). Based on a survey by several institutions, including the municipality and the Riau Islands Remuneration Council, an acceptable wage level would be Rp 1,350,000 a month.

Deputy chief of the union's electronic and metal division Irham Chairunnas told The Jakarta Post the rally was held because employers had failed to offer the wage rise expected by workers.

"The dialogue between workers and employers has reached a stalemate. We demand the mayor take a stance in setting the minimum wage to be on par with the standard costs of living," Irham said.

According to Irham, the minimum wage needs to be at that level so workers can survive, given the cost of accommodation, meals and transportation, and a lesser amount could have an impact on workers' productivity. "We will continue to protest until our demands are met," said Irham.

Separately, head of the Batam Manpower Office, Rudy Syakyakirti, said his office would convey the workers' demands to employers, but asked for workers' understanding of the current tough economic times.

He said the demand for a higher raise was unrealistic. "We ask workers to understand the current condition of the employers. However, we will convey their demands in order to reach a settlement," said Rudy.

Secretary of the Riau Islands chapter of the Indonesian Employers Association, Abdullah Gosse, said employers had limited capacity to raise the minimum wage next year, and any raise could be no more than around Rp 20,000.

"The government and businesspeople should pay attention to the current global situation. Many orders can't be met, or have been canceled. How can employers meet workers' demands in this kind of environment?" Abdullah said.

He has said the governor should decide on the minimum wage, should talks between workers and employers fail, because of the governor's wider perspective.