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Central Java to raise minimum wage by 3.71 percent

Jakarta Post - November 1, 2020

Jakarta – Central Java Governor Ganjar Pranowo has announced that his administration will raise the provincial minimum wage for 2021 by 3.27 percent, despite the Manpower Ministry's directions to maintain wages at current levels.

"We have met with and heard feedback from various parties. We have decided that Central Java's minimum wage for 2021 [will be increased to] Rp 1.79 million," Ganjar said on Friday, as quoted by tribunnews.com.

He said the raise was based on Government Regulation (PP) No. 78/2015 on wages as well as on input from labor unions and the Indonesian Employers Association (Apindo), among other stakeholders.

The administration's policy serves as an official guideline for setting minimum wages in every regency and municipality across the region, according to him.

"[Regencies and municipalities] have until Nov. 21 to set their minimum wages. But it's [optional]," Ganjar said.

However, he added that Banjarnegara and Wonogiri would be required to raise their minimum wages to Rp 1.97 million.

Labor unions have lambasted Manpower Minister Ida Fauziyah for leaving the minimum wage unchanged for 2021, accusing her of siding with businesses over workers.

The workers called on President Joko "Jokowi" Widodo on Friday to instruct Ida to revoke a newly issued circular that announced there would be no increase to the minimum wage. They called the policy unfair, given that at least 11 business sectors were not affected by the COVID-19 pandemic, such as energy, electronics and pharmaceuticals. (rfa)

Source: https://www.thejakartapost.com/news/2020/11/01/central-java-to-raise-minimum-wage-by-3-71-percent.htm