Illustration ( Rizal)
Illustration ( Rizal)

Workers to Hold Rally to Demand Minimum Wage Increase

English indonesian economy (en)
Nia Deviyana • 31 Oktober 2019 08:22
Jakarta: The Confederation of Indonesian Trade Unions (KSPI) is set to hold a demonstration in front of the Manpower Ministry in South Jakarta on Thursday, October 31, 2019.
The association will demand the government to revise the Government Regulation Number 78 of 2015 on Remuneration and raise minimum wages by around 10-15 percent this year. The protesters will come from industrial areas in Jakarta, Banten and West Java.
According to the regulation, minimum wage increase is based on the most recent annual inflation rate and economic growth. Last year, annual inflation rate stood at 3.39 percent, while economic growth reached 5.12 percent.

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"KSPI expects 10-15 percent increase this year. It is based on our own survey," KSPI chairman Said Iqbal said in a written statement received by
In addition, the association will also ask the government to cancel its plan to raise the premiums of Health Care and Social Security Agnecy (BPJS Kesehatan). The group believes that the plan will affect the welfare of workers and their families.
"The government must understand the impact. The hike will burden a whole family," Said Iqbal said.
The new premiums will be officially introduced on January 1, 2020. The policy is based on Presidential Regulation Number 75 of 2019 on the amandment of Presidential Regulation on Number 82 of 2018 on Health Care.
For paid workers, the premium will be five percent of monthly salary, with a maximum salary cap of Rp12 million. Moreover, the employer will be responsible for four percent, while the employee will be responsible for one percent.


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