TEMPO.CO, Jakarta - Jakarta Governor Joko Widodo said laborers’ recent demand for an increased minimum wage rate to Rp3.7 - 4 million was irrational given the nation’s worsening economy.
“The rupiah is weakening, I don’t think it’s proper to talk about a raise,” Jokowi said at the City Hall on Tuesday, September 3, 2013. The governor explained his administration would continue the survey on the Appropriate Living Needs (KHL)to set the wage rate in 2014.
The governor said the year’s wage increase was already high at Rp2.2 million or a 40 percent hike compared to 2011. He added it was necessary to calculate the increase for his administration to avoid issuing counterproductive policies.
Jakarta Deputy Governor Basuki Tjahaja Purnama echoed the governor, saying the laborers’ demand for another raise would force businessmen to exit the capital given the nation’s struggling industry.
“I know that the demand for increased wage to Rp3.7 billion was reasonable because of the high living costs in Jakarta,” Ahok told the laborers. But, he continued, the current economic conditions in general, particularly the conditions of supplies and demands at markets, should also be allowed for.
Ahok explained monthly surveys on KHL were required before the government could raise the laborers’ wage. “These assessments are necessary to monitor the rising trend of goods each month,” he said, adding that the KHL currently comprised 60 items, including housing, transport, health, education and recreation.
Ahok said Jakarta was more suitable for becoming a service and trade hub, thus a wage rate of Rp3.7 would be sensible. However, he reminded that wage increase should be fair for both businessmen and laborers.
SYAILENDRA
