According to the very controversial Omnibus Act, the Indonesian government has decided to raise the minimum wage for each province by about 1%.
As early as 1 January 2022, Indonesia raised the minimum wage in all provinces by 1.09 per cent. This increase is obtained after applying the calculation defined in the Omnibus law, which also abolished thesectoral minimum wage(cf.Indonesia: The Law · Global Voices « Omnibus » threatens workers' rights). This calculation takes into account:
- purchasing power parity,
- labour absorption capacity,
- median wage variables,
- per capita household consumption,
- economic growth,
- inflation.
For his part, the Governor of Jakarta, after discussion with stakeholders and on the basis of a projection of positive economic growth and inflation figures, wanted to raise the minimum monthly wage for his province by 5.1%. It is thus fixed at IDR 4,641.85 or EUR 286.43, the highest in the country.
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Source(s): Asia Briefing | WageIndicator.org
Editor(s): L.VERBOUW