Indonesian capital's minimum wage to rise 15% next year: Jakarta Post

The minimum monthly wage in Jakarta will increase to 3.1 million rupiah (S$316), from the current 2.7 million rupiah.
The minimum monthly wage in Jakarta will increase to 3.1 million rupiah (S$316), from the current 2.7 million rupiah.PHOTO: AFP

JAKARTA (REUTERS) - The official minimum wage in the Indonesian capital will rise by around 15 per cent next year, the Jakarta Post on Tuesday (Oct 27) quoted the governor as saying.

Governor Basuki Tjahaja Purnama said the minimum monthly wage in Jakarta will increase to 3.1 million rupiah (S$316), from the current 2.7 million rupiah, the paper reported on its website.

Earlier this month, Indonesia's government said minimum wages will be increase every year by the country's economic growth rate plus the inflation rate.

Purnama said next year's wage increase was based on both the new formula and on the cost of living in the capital, according to the Jakarta Post.

A wage-setting committee, consisting of officials, employers and labour unions, is set to meet on Wednesday, according to Muhammad Rusdi, secretary-general of the Indonesian Labour Union Confederation.

However, the role of the wage-setting committee has become unclear with the new wage rules.