Indonesia Declares Increased Minimum Wage 2015

Liputan6.com, Jakarta The recently increased subsidized fuel (BBM) has caused people into demanding for an increase in minimum wage. This is because with the fuel price hike there is a need to adjust with the new set price and thus people request for an equal hike in terms of their wages. In order to quickly appease the population and to prevent any prolonging demonstration related to disapproval of the accelerating fuel price, The Ministry of Manpower and Transmigration declares that all provinces in Indonesia have set a Provincial Minimum Wage (UMP) as well as Regional (city) Minimum Wage (UMK) for the year of 2015.

“All of them have officially declared the newly established minimum wage, consisting of 29 provinces who have set their UMP and the other 4 provinces decided to declare the UMK instead of UMP,” as explained by The Director of Labor Wage and Social Security of The Ministry of Manpower and Transmigration, Wahyu Widodo when he spoke to Liputan6.com on Sunday (11/23/2014).

The first province that sets its UMP for 2015 is Central Kalimantan. Meanwhile West Java comes last. The average of the national minimum wage increase reaches 12.77 percent.

DKI Jakarta is recorded to have set the highest minimum wage and East Nusa Tenggara on the other hand, sets the lowest.

“The calculated national average of Provincial Minimum Wage is Rp 1.78 Million. This figure is only Rp.13,600 lower than the average national Decent Living Necessity (KHL) component,” he shared.  

The increase of Minimum Wage is a proof that Government as well as the local leaders in charge of executing this decision are staying true to their commitment in trying to improve the welfare of the people.

“The UMP is like a safety net. With UMP that is adjusted closely to KHL, it is expected that workers can enjoy decent living standards. The next agenda will be focused on the linking the workers wages to  labor productivity,” he added. (Akp/Ein)