Jakarta – As many as 25 companies have sought dispensation to not apply the provincial minimum wage (UMP) for a certain period of time next year.
The new monthly wage, which would be effective in January, was set at Rp 2.44 million (US$201) or 11 percent higher than this year's Rp 2.2 million.
Jakarta Remuneration Board member Sarman Simanjorang told kompas.com on Saturday that most of the companies requesting dispensation were from the intensive labor industries from the National Business Belt (KBN) in Cakung, East Jakarta.
According to Manpower and Transmigration ministerial decree No 231/2003 on UMP postponement procedures, the firms should fulfill two requirements: financial reports and minutes of meeting (MOM) of an agreement between firm management and workers' representatives.
Sarman said that after the board and the Transmigration and Manpower Agency evaluated the requirements, they would make a recommendation for Jakarta Governor Joko "Jokowi" Widodo to decide on.
Sarman said he hoped the UMP issues would not be a prolonged polemic, as it would affect the investment climate in the city. A number of labor unions are still opposing the 2014 minimum wage. The workers demanded the governor raise the minimum wage by 68 percent to Rp 3.7 million.