Jakarta. The Jakarta Manpower Department announced a 5.6 percent rise in the capital city’s minimum wage to Rp 4.9 million ($311.6) per month on Monday, the deadline for all provincial governments to decide on the new minimum wage for 2023.
The current minimum in Jakarta is Rp 4,641,854.
In Central Java, Governor Ganjar Pranowo decided to increase the provincial minimum wage by 8 percent to nearly Rp 2 million per month.
The new provincial minimum wage is based on the manpower minister’s decree which takes into account the inflation, the economic growth, and the productivity factor in the formulation of the 2023 wage, Ganjar said.
Manpower Minister Ida Fauziyah has issued a decree allowing district and provincial governments to raise the minimum wage by a maximum of 10 percent, which could see wages in some industrial cities top Rp 5 million per month for the first time.
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The Indonesian Chamber of Commerce and Industry (Kadin) and the Indonesian Employers Associations (Apindo) have challenged the decree at the Supreme Court on the grounds that it’s based on the 2020 Job Creation Law which has been frozen by the Constitutional Court until the amendment is completed.
Kadin Chairman Arsjad Rasjid said the lawsuit seeks to prevent the ministerial decree from running counter to existing laws on minimum wage.
In North Sulawesi, the minimum wage was hiked by 5.2 percent to Rp 3.5 million.
A number of provinces have yet to announce their new minimum wage.