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JAKARTA - Manpower and Transmigration Minister Muhaimin Iskandar has said the increase in Indonesian labourers` minimum regional wage, or UMR, will be decided in the middle of this month.
Muhaimin made the statement at a seminar here on Thursday, adding that all the provincial governors in Indonesia were waiting for the outcome of the wage council meeting, which they would use as a reference while considering the UMR raise.
"After the wage council meeting, the governors will assess the UMR amount," Muhaimin said. "In order to decide on the amount of UMR increase in every region, the governors should pay attention to several aspects, such as high transportation expenses and house rents," he noted.
"We think there will be a significant increase, and the UMR in Jakarta will at least reach Rp2 million," the minister said, adding that the figures would be different in other provinces. Currently, the UMR in Jakarta is Rp1.5 million per month.
The government decided to increase the UMR in the wake of a massive nationwide strike on October 3, which crippled the production process in several industrial centres, with more than 2 million workers taking to the streets.
The workers demanded three things: abolition of the outsourcing system, better pay and health security. "Under the new regulation, the outsourcing system will not be applicable for core jobs," Muhaimin said. "Contract workers can only be used for non-core jobs, such as cleaning services, security, catering and mining support," he added.
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