Multa Fidrus, Tangerang – The global financial crisis has forced several large manufacturers in Banten to file a request with the provincial administration to pay workers less than the minimum wage.

"So far, (Banten) Governor Ratu Atut Chosiyah has only approved six large firms employing some 10,000 workers to pay their workers less than the recommended minimum monthly wage," Eutik Suharta, head of the Banten Manpower Agency, said Tuesday.

The firms include PT Sugih Brothers and PT Panca Citra Wira in Serang, PT Masia Baru, PT Homeware Internasional and PT Argo Pantes in Tangerang.

Suharta added the governor's decision was issued after the agency conducted studies into the companies' financial conditions and production costs.

He said the administration would approve the firms' request to suspend the implementation of the recommended minimum as long as they completed six prerequisites.

The prerequisites include original agreement contracts between workers and management, financial reports, corporate establishment certificates, payroll data, the number of workers being proposed for less than minimum wage, and records of production plans and progress over the past two years.

He said the six firms would be allowed to pay the workers based on last year's minimum monthly wage of Rp 1,010,850 – less than the minimum this year of Rp 1,055,640.

Maya Agung Dewandaru, deputy advocacy head of the National Labor Union's (SPN) Serang branch, said not implementing the recommended minimum monthly wage this year would be acceptable as long as it was done in phases.

In Tangerang, four firms reportedly also stated their inability to pay workers according to the minimum monthly wage this year.

Hasdanil, head of the Tangerang regency Manpower Agency, said he had not received reports on whether the firms had filed a similar request with the governor.

Data from the Tangerang regency Statistics Bureau shows the unemployment rate in the regency has risen steadily in the past two years.

"The unemployment rate in Tangerang increased (by 18 percent) from 494,789 last year to 785,987 this year. The figure will likely continue to increase by an estimated 40 percent by June," said bureau head Kris Marta.

He added the unemployment rate in the regency began to increase sharply from 2006, from a low of only 79,192.