Indonesia: Central Java to increase minimum wage

Central Java governor Ganjar Pranowo has announced plans to raise the minimum wage for the province for 2021 by 3.71%.
By: | November 4, 2020

This move came one week after the Minister of Manpower’s assurance that there will be no increase in the minimum wage next year, according to Tribunnews. 

“We have met with and heard feedback from various parties. We have decided that Central Java’s minimum wage for 2021 [will be raised to] Rp1.79m,” said Ganjar, according to The Jakarta Post. 

He said the raise was based on Government Regulation (PP) No.78/2015 on wages and input from labour unions and the Indonesian Employers Association (Apindo). 

According to Ganjar, his administration’s policy provides a guideline for setting minimum wages across Central Java. The regencies of Banjarnegara and Wonogiri would be required to raise their minimum wages to Rp1.97 million (US$135).

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Earlier, Deputy president for Consolidation of the National Executive Council of Indonesian Trade Unions (DEN KSBSI) Surnadi had berated the Minister of Manpower Ida Fauziyah for being pro-employer by freezing the minimum wage for 2021 in Java.  

Ida, on the other hand, has defended her stand, saying the freeze was to “provide protection and employability for workers/labourers and to maintain business continuity… during the COVID-19 pandemic”, said Tribunnews.