Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Christina Desy, Fitri Novia Heriani
As always conducted every year now and then, all provinces in Indonesia determined the minimum provincial wage at the end of the year. Specific for 2014, the minimum wage in all provinces have been determined on November, and will enter into fore by 1 January 2015. Jakarta Special Capital Region, for instance, has determined the minimum wage of IDR 2,700,000.
The process in determining minimum wage, regardless of which province, is painful and time-consuming. The conflicting interests between workers versus employers, workers verus government, and employers versus government always become the center stage when reviewing the minimum wage.
From the business perspective, annual review of minimum wage and the consequent increase in worker’s salary, sometimes lead to many problems. For example, higher operational cost each year without necessarily having higher productivity, or worst case scenario, bankruptcy.
Trying to provide a solution on this specific problem, Hanif Dhakhiri, Minister of Manpower, stated that the government currently considers to revise the minimum wages determination formula to cater and balance the needs from both employers and employees. To his concern, the current formula is unfair as it merely relies to the Decent Living Needs Index (Kebutuhan Hidup Layak –KHL) without considering the varying businesses’ ability.
“The labor-intensive companies, for example, are obligated to provide the same minimum wages as the small companies, only with a lot more employees to be paid,” Mr. Dhakhiri said on Monday.
According to Mr. Dhakhiri, the best formula is by implementing the income and expense approach, in which he observes that the demand to increase salary is caused by imbalance between income and expenses. By that, Mr. Dakhiri expects the government to press the employees’ expenses by taking over the health, education, and even housing expenses.
“Therefore, the employers must actively encourage and assist their employees to join the aid programs provided by the government,” Mr. Dhakhiri explained further.
Sharing Mr. Dhakhiri’s thoughts, Saleh Husin, Minister of Industry also sees the importance of providing fair salary increment scheme for employers and employees in industrial sector. Mr. Husin informed that his Ministry has prepared the scheme which sets out the certain percentage for annual salary increment so that the companies may forecast their cash flow.
Sofjan Wanandi from the Indonesian Employers Association conveyed another concern regarding the minimum wage for informal sector labors who hardly enjoy the salary increment. Sadly, the minimum wage mostly apply to employees in formal sector only, while informal sector labors hold 80% of total manpower in Indonesia. By that, Mr. Wanandi wishes for the government to also put more attention to informal sector labors.
(hot/kc)
Christina Desy, Fitri Novia Heriani
As always conducted every year now and then, all provinces in Indonesia determined the minimum provincial wage at the end of the year. Specific for 2014, the minimum wage in all provinces have been determined on November, and will enter into fore by 1 January 2015. Jakarta Special Capital Region, for instance, has determined the minimum wage of IDR 2,700,000.
The process in determining minimum wage, regardless of which province, is painful and time-consuming. The conflicting interests between workers versus employers, workers verus government, and employers versus government always become the center stage when reviewing the minimum wage.
From the business perspective, annual review of minimum wage and the consequent increase in worker’s salary, sometimes lead to many problems. For example, higher operational cost each year without necessarily having higher productivity, or worst case scenario, bankruptcy.
Trying to provide a solution on this specific problem, Hanif Dhakhiri, Minister of Manpower, stated that the government currently considers to revise the minimum wages determination formula to cater and balance the needs from both employers and employees. To his concern, the current formula is unfair as it merely relies to the Decent Living Needs Index (Kebutuhan Hidup Layak –KHL) without considering the varying businesses’ ability.
“The labor-intensive companies, for example, are obligated to provide the same minimum wages as the small companies, only with a lot more employees to be paid,” Mr. Dhakhiri said on Monday.
According to Mr. Dhakhiri, the best formula is by implementing the income and expense approach, in which he observes that the demand to increase salary is caused by imbalance between income and expenses. By that, Mr. Dakhiri expects the government to press the employees’ expenses by taking over the health, education, and even housing expenses.
“Therefore, the employers must actively encourage and assist their employees to join the aid programs provided by the government,” Mr. Dhakhiri explained further.
Sharing Mr. Dhakhiri’s thoughts, Saleh Husin, Minister of Industry also sees the importance of providing fair salary increment scheme for employers and employees in industrial sector. Mr. Husin informed that his Ministry has prepared the scheme which sets out the certain percentage for annual salary increment so that the companies may forecast their cash flow.
Sofjan Wanandi from the Indonesian Employers Association conveyed another concern regarding the minimum wage for informal sector labors who hardly enjoy the salary increment. Sadly, the minimum wage mostly apply to employees in formal sector only, while informal sector labors hold 80% of total manpower in Indonesia. By that, Mr. Wanandi wishes for the government to also put more attention to informal sector labors.
(hot/kc)