Bagus BT Saragih, Jakarta – Industry Minister MS Hidayat said on Friday that he supported a plan of top businesspeople to challenge Jakarta Governor Joko "Jokowi" Widodo's decision to set Jakarta's 2013 provincial minimum wage at Rp 2.2 million (US$228).

"I have been informed by Apindo [Indonesian Employers Association] that it will file a lawsuit with the PTUN [state administrative court]. As long as it utilizes legal avenues, I support it," Hidayat told reporters at Halim Perdanakusuma Air Force base in East Jakarta.

Hidayat was among President Susilo Bambang Yudhoyono's entourage that just arrived from Islamabad, Pakistan, to attend the D-8 Summit.

"Businesspeople have said that their aspiration was not accommodated by the decision on the minimum wage. Sofjan phoned me about the matter," he said, referring to Apindo chairman Sofjan Wanandi. "Apindo is afraid that its members will have to lay off workers," he added.

Jokowi announced Tuesday that the 2013 provincial minimum wage had been set at Rp 2.2 million, a 44 percent increase from this year's Rp 1.5 million.

Although the increase was slightly lower than the recommendation of Rp 2,216,243 by the City Remuneration Board, it has sparked controversy. Businesspeople have said that they considered the minimum wage too high and that it would significantly affect their cash flow.

Hidayat said that he had made a deal with Apindo that small and medium enterprises (SMEs) and labor-intensive industries would be exempt from paying the new minimum wage. "I hope the deal can be implemented as soon as possible," the minister said.

Jokowi, who was also at the Air Force base, said he would not object to Apindo's plan to challenge the new minimum wage policy via court. "It is their right to do so," he said. (lfr)