Minister supports employers` desire to set wages for workers

Minister supports employers` desire to set wages for workers

Hatta Rajasa. (ANTARA/Wahyu Putro A.)

"The minimum wages for laborers should be decided by the bipartite body."
Jakarta (ANTARA News) - Chief Economic Minister Hatta Rajasa has supported the idea that minimum wages for laborers should be decided based on the productivity and capability of the company.

"The minimum wages for laborers should be decided by the bipartite body. We in the government should only indicate the lowest limit," Hatta said after attending a dialog organized during the Ninth National Congress of the Indonesian Employers Association (Apindo) here on Tuesday.

Now, as contained in Law No. 13/2003 on Manpower, the wage should be decided by regional government heads.

That is why, according to Hatta, it would not be easy to revise the regulation and change the mechanism where salary is to be made by the bipartite party. The law should be revised first.

Hatta said his side wanted workers to get adequate wages for their welfare while their employers would also get enough profit for the survival of their firms.

"The point is that we want improvement in the workers` welfare and the company would remain to run well," he said.

Earlier, the Apindo expressed its aspiration that minimum wages for workers should be decided based on the productivity and capability of the company and be decided through a bipartite mechanism.

"It should be based on the productivity and capability of the company. For this, we have the idea that wages should be decided by a bipartite party," Franky Sibarani, Apindo deputy secretary general, said.

He said that what was in force today was that provincial minimum wages which had been formulated by the Remuneration Board still had to be approved by regional heads.

In a number of cases, decisions on minimum wages made by regional heads are higher than the ones decided by a remuneration board.

"In Sukabumi, the decision made by the regional remuneration board was not followed. The district head even raised it again," he said.
(Uu.A014/S012)

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