Only 8 of 33 Provinces Require Living Wage

According to a recent announcement by the Ministry of Manpower and Transmigration, only 8 of Indonesia’s 33 provinces have provincial minimum wages that fulfill the requirements for a “living wage.”  Those provinces are North Sulawesi, North Sumatera, South Kalimantan, Central Kalimantan, South Sulawesi, Bengkulu, DI Yogyakarta and Jambi.

The Minister of Manpower and Transmigration, Muhaimin Iskandar, suggested that wages that provide a living wage could be negotiated between unions and employers.  He also suggested that the provincial minimum wages should be seen as a social safety net providing a floor for wages and not as a benchmark for industry wages, which is still often the case in Indonesia.

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