A day after the Jakarta Wage Council set the capital’s minimum wage at Rp 2.2 million per month, the Bekasi Wage Council on Thursday decided to raise its minimum wage to Rp 2.1 million per month, a significant increase from last year’s amount of Rp 1.4 million.
Abudl Iman, the chairman of the Bekasi Wage Council, said on Friday that the new minimum wage takes into account the cost of living as well as other variables, such as food prices, electricity tariffs and rental costs for accommodations.
Iman added that the decision will be submitted to West Java Governor Ahmad Herywan, as his approval is required to come to an official decision.
The head of the Bekasi branch of the Indonesian Employer Association (Apindo) Bekasi, Purnomo Narmiadi, told Kompas.com that employers were disappointed with the decision and considered the new monthly wage too steep.
He noted that it was likely several businessmen would shut down their enterprises since they won’t be able to afford to pay workers.
On the other end, the chairman of the All-Indonesian Workers Union’s (SPSI) Bekasi branch, Abdullah, commented that laborers were very pleased with the resolution.
Abdullah said that employers who could not directly adjust to the wage increase could request to delay the implementation for six months by submitting their financial data compiled over the past two years to the wage council.