One of the country's largest labor unions rejected on Monday the government's "inconsequential" proposed revisions to the Reasonable Living Cost Index (KHL), and threatened to hold mass protests on July 12 if it isn't resolved.
The KHL, on which the minimum wage is based on, considers 46 components of living costs, including rice and other basic needs. The Confederation of Indonesian Labor Unions (KSPI), in a written statement, said that it rejected the four components to be added to the list – socks, belt, clothing iron and deodorants.
"The addition of the four items will only result in an addition of Rp 15,000 to Rp 20,000 per month [$1.50-$2]," the statement said. KSPI also said the survey carried out by the Ministry of Manpower and Transmigration to determine this only covered 3,000 of the country's 30 million formal workers and excluded industrial areas such as Batam, Tangerang and Bekasi.
"This means that for industry intensive areas such as Bekasi and Tangerang, next year's wages will effectively get no increase," KSPI said.
The existing 46 components in the KHL already failed to reflect actual needs since even single workers have to borrow money to meet their daily needs, the statement added.
"We demand the Coordinating Ministry for the Economy and the Manpower and Transmigration Ministry to revise Ministerial Regulation No. 17 of 2005, so that the 46 components are increased to 86 to 122 components," the statement said.
KSPI said workers in Indonesia, with a gross domestic product of Rp 6,000 trillion in 2011 and a $3,600 per capita income, were only paid $120 per month, much lower than the $250 in the Philippines, $350 in Malaysia, $450 in Singapore and $500 in Brunei.
The union also called on the Manpower and Transmigration Ministry to come out with the revision in July in line with the promises made at the House of Representatives.
It said that along with other labor federations and confederations, KSPI plans to hold a "national action" on July 12 to push for the revision.
It said the action would involve some 70,000 workers and would be held at the Coordinating Ministry for the Economy, the Presidential Palace and the Ministry of Manpower and Transmigration. "It will also be held simultaneously in 15 provinces across Indonesia," the statement said.