Rupiah and Cents

As was mentioned previously on this blog, it is regional minimum wage setting season.  If news reports are any indication, its hard to see the process as well ordered.

In Banyuwangi, East Java, the labor and business representatives have been unable to come to an agreement on a regional minimum wage to suggest to the East Java Governor.  Instead, they will each be sending their own suggestions.  Yet, what is notable here is just how close their numbers are.  Business representatives are suggesting Rp 865,000/month, while labor is suggesting Rp 868,000/month.  That’s a difference of 0.34% or about 4 dollars over an entire year.

At the other end of the spectrum, there were SPSI demonstrations in Sidoarjo, East Java last week calling for a minimum wage of Rp 2,000,000 per month, which is nearly double Sidarjo’s current minimum wage of Rp 1,000,500.  The leader of the demo promised more street actions, but they are clearly at a very different stage in the negotiating process.

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