Under the policy, which is part of the fourth economic policy, every year pay hike in Indonesian workers would be based on inflation and economic growth rate.
If inflation was 5 percent and the economic growth was 5 percent , the labor pay would be raised by 10 percent, Fredy Ongko Saputra, chairman of the East Nusa Tenggara Apindo said.
The formula is better than in used in Australia where pay hike is based only in inflation rate, Fredy said.
"With the formula pay hike could be predicted. There should be no reason for chaotic demonstration demanding pay hike every year," he said, adding it would give certainty both for the workers and the employers.
The formula would be officially issued with a government regulation to be signed soon by President Joko Widodo, he said.
Earlier, the Central Bureau of Statistics (BPS) the daily nominal pay of farm workers in September 2015 rose 0.23 percent to Rp46,740 from Rp46.630 in August.
"The nominal pay rose 0.23 percent and the real pay rose 0.26 percent," BPS chief , Suryamin said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2015
