Minimum Wage Increase In Jakarta

From a recent article in The Straits Times on the announced 15% increase of Jakarta’s municipal minimum wage:

The Jakarta municipal government announced that the required minimum wage would be increased by 15 per cent to 1.29 million rupiah. The hike will take effect on Jan 1 and apply to workers in sectors such as textiles, food and beverage, and retail.  Thus, Jakarta’s minimum wage would surpass those in the capital’s satellite cities, such as Depok (1.25 million rupiah) and Bekasi (1.28 million rupiah).

But not all workers and labour unionists are happy. They note that the new minimum wage is still below the estimated cost-of-living standard, known by its Indonesian acronym KHL, set by the municipal government. That figure is pegged at around 1.4 million rupiah.

A look at the monthly expenses of Mr Sugiharto, 35, a photographer, shows why.  The father of two said he and his teacher wife have a combined income of nearly 1.4 million rupiah. His older child’s monthly school fees are 160,000 rupiah, the family’s electricity bill runs up to 250,000 rupiah, and around 600,000 rupiah goes to transportation.  The rest of it — only 390,000 rupiah — is left for food and savings, if any, for the family. “It’s never enough if you live in Jakarta,” he told the Jakarta Globe. “We have a list of bills which we struggle to meet.”

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