Minimum wage rates for 2008 throughout Indonesia.
On average minimum monthly wage rates have risen about 10% on 2007, and cover about 90% of estimated average living costs (KHL, Kebutuhan Hidup Layak).
Some employers are unhappy about the raising of minimum wages and the Jakarta Post says they fear the investment climate in the country will deteriorate.
In the industrial zone of Riau Islands some companies have filed a lawsuit at the State Administrative Court against the 11% rise in monthly wages to 960,000 rupiah (US$100) from Rp 860,000 in 2007.
Deputy chairman of the Riau Islands chapter of the Indonesian Employers Association (Apindo), Abdullah Gose, said employers would pay workers at the previous rate until the court made a decision.
If we are defeated in the case, we will appeal to the Supreme Court until the governor reviews his decree on the new minimum wage.
Many investors are relocating their factories to China and Vietnam partly because of the unpredictable wage hikes which have affected the investment climate in the country
In West Java about 40 labour-intensive industries in West Java have filed a request to postpone paying the increases to staff, or requested exemptions.
In Bandung, West Java, chief of the manpower and transmigration office Sukarto Karnen said it was the governor's prerogative to accept or reject the requests.
We are waiting on an official response from the governor on the requests.
Employers, mostly owners of garment and shoe factories, have blamed their problems on the flow of transhipments of Chinese-made clothing and other products into Indonesia.
Meanwhile the chairman of the North Sumatra chapter of the Confederation of Indonesian Labor Unions, Yos Waruwu, said most workers and labour unions opposed wage increases too, but because they weren't big enough.
Employers should not only demand to be understood but should also understand the workers's poor livelihood
He said that the ideal minimum wage for a married worker in North Sumatra should be 1.2 million rupiah.
I am sure the employers were not unhappy as to the pay raise or the minimum wages for workers.
Looking at those figures, it is nothing compare to the hyperinflation that is still waging amidst political bickerings.
Even if you set the standard to approximately 2 million for a blue collar or around 3 million for medium and below white collar workers.
The main problem is. are they willing to work their responsibilities in comparison to their wages?
Productivity is what the employers sought after.
Patung, any thoughts/comments on what the minimum wage should be in DKI Jakarta?
Well it does seem strange that some other places like Bekasi have a higher minimum wage.
Seems Central Java areas are substancially lower, why is that?????
How much does an executive secretary / PA working for a foreign company in Jakarta earn these days?
My personal secretary is 5 million Rupiah per month gross- but the company is Indonesian.
I would assume that is the higher side. I would expect anywhere between 2.5 million to 4 gross would be common (plus medical, etc as per relevant union award)
@ Purba Negoro,
even more ironic is to know indonesians wearing bureaucrat’s uniform asking dana siluman from indonesian business, then indonesian business preferred to lowering down indonesian workers’ salaries to compensate this.
Labour productivity has strong correlation to individual rewards and payment systems, so, if you pay less than minimum decent living needs (KHL in Indonesian term), don’t expect to get any higher productivity! We have to improve living standards of workers to decent life in order to achieve higher productivity.
Those numbers sound familiar… Correct me if I’m wrong, but seems that it hasn’t gone up all that much in last (say) 5 years?
Kinch, within United Nations standard salary for PA/Secretary in Indonesia – which is usually be given GS 5 level, they will earn 8.75 millions p/month nett for first year, it will increase about 3 to 5% annually. I believe private sectors will pay PA/secretary less than that.
Sorry, not really answering your question, but just giving you an idea how international organisation will pay their secretary.
@indahs thanks… useful to know… but as you say for sure UN will be paying higher than just about anyone else (except possibly some oil & gas?) given that it’s not actually their money and in any case is just a kind of mutual back-scratching racket. nice work if u can get it. ergo must be some subtle KKN involved in getting oneself hired?
having said that, probably staff do deserve a little bit of extra danger money given that the great unwashed for some reason seem to like having demos outside every now and then.
Dana Siluman? Nonsense.
You mean Chinese actually part-paying their way in society having defrauded the Indonesian Government of millions of Rupiah in legitimate taxation?
Be pragmatic- corruption only occurs when the outstretched hand is filled- thus the Indonesian Chinese are also architects of their own destiny. Thomas Aquinas said: “Opportunity maketh the Thief”.
It’s very strange- that no one I know ever have to pay bribe or sogok to Indonesian Bureaucrat and neither do many Western Companies.
This seems suspicioulsy common toi a demographic known for their cullsion, monopolism, price fixing, price gouging, hoarding and white-collar fraud esepcially fraudulently acquired loans agined via complex facade business.
Perhaps because we pay what is owed to the State and Society to the letter of the Law and don’t cook books better than Enron interbred with DBS-OCDB to avoid our Legal and moral tax burden?
There are parasites in this Indonesia who think they are somehow above from the Law and reciprocal social obligation of tax.
And they dare claim they are Indonesian too?
What cheek and thick face they have!
Wage levels have been essentially static since Indonesian Chinese currency speculators and debtors (loans achieved throw illegality and fraud) caused currency collapse of 1998.
Yet another reason the Rakyat loves them so.
The idiocy of static wages is solely caused by certain ethnic dominated Indonesian Commerce Chamber successfully lobbying- particularly Pangestu and peddled their myth of trickle-down (read wage serfdom for the Rakyat)- which
coincidentally happens to most benefit their demographic.
Numerous Yayasans, charities, advocates and other lobbysits have campaigned for higher wages- some for humanist reasons (alleviate their increasing poverty- halt slide into worse poverty) and industry seeking a kickstart for a potential robust domestic consumer economy- wheer all would be winners.
But certain ethnic vested interest groups, as Kalla has highlighted, do not like competition- they much prefer clannism and collusion.
That’s not racist- it’s just inconvenient documnted fact.
Want a better Indonesia? Vote for a Golkar-PDI-P- alliance.
Golkar’s and PID-P’s businessmen are equally impatient with SBY’s incompetence.
Well, the main issue is that UN usually pay salary higher for local staffs (GS level) than market because they do not give benefits that employees of private sectors enjoyed. UN has really well organised health insurance & retirement scheme but they won’t give holiday pays or transportation costs reimbursement.
UN has never given any permanent contract to GS level due to the fact that the hosting country may stop its membership at any time. Working at UN means that you have to dare facing every year that your working contract may not being extended if your working perfomance below their expectation.
KKN in UN? Well, so far I know they do have a policy not to hiring people that has family relation to UN staff at same duty station/unit. Recommendation by long-term UN staff is indeed matters though. I believe they received thousands application for every vacancy announced…quite tough work to sort them out while they only have limited number of human resources (Indonesian office has relatively small number of staffs).
Thanks for extra info. Fair enough Re benefits, I guess.
However, I’d be willing to bet that in the entire time that the UN has been in Indonesia, nobody has ever been fired for non-performance . Realistically, it must be a job for life with more cash and fewer benefits. Advantageous tradeoff for people with good financial self-discipline.
I’m sure there are ways and ways to get a ‘recommendation’. As sure as water tends to flow downhill.
But compared to (say) Pertamina, I’m also sure that Jkt UN is as pure as the driven snow
Seems to be a much bigger secretariat in Bangkok + a huge NGO hanger on trade going on around it.
Kinch’s Law of NGO Hypocrisy:
NGO’s like to base themselves in nice places. For example, Chiangmai is full of them. So is Phuket – there are *still* folks there now purporting to help Tsunami survivors.
Neither of these places are remotely the poorest parts of Thailand – that honour goes to parts of Isaan which are flat, dry, boring, totally lacking in wine bars and bakery cafes. Ergo NGOs don’t want to know about them.
Kinch’s Tenuous Corollary:
In the minds of the international wine bar and bakery appreciation set, Jakarta must suck relative to Bangkok because there are more NGOs + a much bigger UN Secretariat in Bangkok.
@ Purbo Negoro
Mostly multi/transnationals belongs to OECD countries should follow code of conduct published by ICC for not conducting corruption in host countries. OECD has ruled out a convention on Combating Bribery of Foreign Public Officials in International Business Transactions that give sanction to the actors. However, this is limited to OECD countries members. I believe there is correlation of recent decreasing numbers of foreign investments to corruption index in Indonesia since this convention is officially bonding OECD state members.
Dana Siluman doesn’t exist? I don’t think so. I just read a column in businessanticorruption.com and it pointed out that companies pay bribes almost to nearly 40% of their taxes and enterprises spent an average of 5% of their earnings on unofficial payments. Read their report yourself.
I don’t have any problems with ethnic Chinese-Indonesian as much as you do. If they hold Indonesian passport and they committed corruption, they should be treated as their fellow Indonesians who committed similar crimes regardless their ethnicity.
Voting for Golkar or PDI-P? I am a generation that was raised in Golkar & PDI-P era, and I know how it was. I had enough with them.
How about lower wage earners in Jakarta, say a person working in a mini mart? How much are they paid?
what is the minimum wage rates for skilled / unskilled workers , office clerks/ white collared workers at present in Indonesia ? Also , where can i get hold of a labour law of indonesia ?