Jakarta – The Jakarta Remuneration Council has decided to set the provincial minimum wage at Rp 3.1 million (US$213) per month next year.
Priyono, head of the Manpower and Transmigration Agency, said on Thursday evening that the council would recommend the amount to Jakarta Governor Basuki "Ahok" Tjahaja Purnama.
"The unions proposed Rp 3,133,470, and taking this into account, the administration decided on Rp 3.1 million," he said as quoted by tribunnews.com.
He said the council used the formulation regulated by Government Regulation No. 78/2015, which calculates minimum wage by multiplying current wages by the inflation rate plus the growth rate.
A representative from the council, Muhammad Toha, expressed disappointment with the amount because some workers wanted to raise the wage to Rp 3,324,900. This amount is derived from the same formulation but replaces the minimum wage with current living costs. Currently, the minimum wage is set at Rp 2.7 million.