The Jakarta Wage Council has set the 2014 reasonable living cost index (KHL) at Rp 2.2 million ($199), much lower than the Rp 2.7 million that workers were originally calling for.

"The Jakarta Wage Council has agreed to make the reasonable living cost index for workers Rp 2,229,860.33," Sarman Simanjorang, a member of the council, said as quoted by the Jakarta government's news portal on Sunday.

The capital's minimum wage is pegged to the living cost index, which totals the average costs of standard expenses like housing transportation and food in Jakarta. Workers pushed for a higher living cost index after fuel subsidy cuts and the weakening rupiah drove up inflationary costs in the capital.

Last year, the minimum wage exceeded the index. This year, despite a push by labor unions, the two will total Rp 2.2. million a month.

Over the weekend, a meeting about the living cost index ended in a deadlock after workers' representatives at the Jakarta Wage Council would not budge on their demand asking for Rp 2,767,320 as the minimum KHL.

"The representatives walked out of the meeting room," Sarman said. "But according to the regulation, the decision [to set the KHL] is valid because two representatives [with the government and entrepreneurs] have agreed.

"Last year, entrepreneurial representatives walked out of the minimum wage meeting, but that decision was still valid because it was the official decision of the council."

Dedi Hartono, member of the council representing the workers, said he rejected the decision because it was far off from his constituents' original request. "That amount [Rp 2.7 million] is the closest amount to the real living cost of workers in 2014," Dedi said as quoted by Kompas.com.

Sarman insisted, however, that the calculations by the workers' representatives were baseless. He also said that a survey conducted by entrepreneurs determined that workers were asking for too much money.

For instance, workers reportedly requested a minimum of Rp 800,000 for room rental, even though the survey found out that they only really need Rp 570,000 a month to cover such costs. The council, in a compromise, granted the workers Rp 650,000 a month for rent. The council will later convene to decide on the 2014 minimum wage.

This year, Jakarta's minimum wage is set at Rp 2.2 million, and its reasonable living cost index is set at Rp 1,978,789.