The United Independent Labor Union (GSBM) and the Labor Awakening Union (SBB) originally submitted ajudicial review petition on Article 90 (2) of the Labor Lawand its interpretationregarding the country's minimum wage, and theConstitutional Court (MK) recently resumed its judicial review of the petition.
During the latest session of the court, Indra Tjandraningsih, a researcher from AKATIGA Bandung, was called to the stand in order to defend the applicants’ arguments regarding the article under review, which, it is claimed,deniesworkers the right to receive a minimum wage. Incourt, Mrs. Tjandraningsih stated that businesses must pay the minimum wage, as it is a binding, mandatory item of public policy and enshrined under prevailing laws.
Mrs. Tjandraningsih explained that the country's minimum-wage policy originally came into existence in order to protect workers from the possibility of being paid extremely low wages by the companies that they work for, and of being treated as insignificant “commodities” when viewed in the context of Indonesia's vast labour pool.
Mrs. Tjandraningsih went on to state that the fluctuating global economic climate and the high levels of competition that businesses face has forced many companies to seek out cheap workers. Moreover, inflation over the last decade has caused increasing income disparities here, and the purchasing power of many of the countries less well-off citizens has dropped significantly.
“Therefore, in order to manage wage payments within society and to reduce income disparities among the poorest households, the minimum-wage policy must be encouraged,” emphasized Mrs. Tjandraningsih.
Mrs. Tjandraningsih also reminded the government of its obligation to protect its citizens – especially workers – with regard to minimum wage. By doing so, citizens will be able to enjoy a decent quality of life, increasing their ability to purchase household necessities and reducing poverty as a whole.
This obligation has also been incorporated in Articles 88 and 89 of the Labor Law, which mandates that the government—through the Minimum-Wage Council—determines a standard minimum wage while taking all of the relevant interests into account, including the economic climate.
“Provisions that regulate minimum wages without question are mandatory,” concluded Mrs. Tjandraningsih firmly.
The United Independent Labor Union (GSBM) and the Labor Awakening Union (SBB) originally submitted ajudicial review petition on Article 90 (2) of the Labor Lawand its interpretationregarding the country's minimum wage, and theConstitutional Court (MK) recently resumed its judicial review of the petition.
During the latest session of the court, Indra Tjandraningsih, a researcher from AKATIGA Bandung, was called to the stand in order to defend the applicants’ arguments regarding the article under review, which, it is claimed,deniesworkers the right to receive a minimum wage. Incourt, Mrs. Tjandraningsih stated that businesses must pay the minimum wage, as it is a binding, mandatory item of public policy and enshrined under prevailing laws.
Mrs. Tjandraningsih explained that the country's minimum-wage policy originally came into existence in order to protect workers from the possibility of being paid extremely low wages by the companies that they work for, and of being treated as insignificant “commodities” when viewed in the context of Indonesia's vast labour pool.
Mrs. Tjandraningsih went on to state that the fluctuating global economic climate and the high levels of competition that businesses face has forced many companies to seek out cheap workers. Moreover, inflation over the last decade has caused increasing income disparities here, and the purchasing power of many of the countries less well-off citizens has dropped significantly.
“Therefore, in order to manage wage payments within society and to reduce income disparities among the poorest households, the minimum-wage policy must be encouraged,” emphasized Mrs. Tjandraningsih.
Mrs. Tjandraningsih also reminded the government of its obligation to protect its citizens – especially workers – with regard to minimum wage. By doing so, citizens will be able to enjoy a decent quality of life, increasing their ability to purchase household necessities and reducing poverty as a whole.
This obligation has also been incorporated in Articles 88 and 89 of the Labor Law, which mandates that the government—through the Minimum-Wage Council—determines a standard minimum wage while taking all of the relevant interests into account, including the economic climate.
“Provisions that regulate minimum wages without question are mandatory,” concluded Mrs. Tjandraningsih firmly.