The Kepri Provincial Government’s decision to increase the 2024 Minimum Wage by a modest 3.76% has met with resistance from the local labor force, who deem the adjustment inadequate in light of economic conditions.
The Governor of Kepri, Ansar Ahmad, has formalized a minimal raise in the 2024 Minimum Wage, documented in the Governor’s Decree No. 1282 of 2023, dated November 21, 2023.
The increment of IDR 123,298 from the 2023 figure brings the minimum wage to IDR 3,402,492, a rate that labor representatives find unacceptable.
Yapet Ramon, Chair of FSPMI Batam, argues that the workers deserve a more substantial increase, suggesting a minimum wage over IDR 3.7 million.
Read More: Labor Unions in Batam Demand 15% Minimum Wage Increase for 2024
Wage disparities across Kepri’s regions are stark, with Batam’s current wages at IDR 4.5 million, while Tanjungpinang’s hover around IDR 3.2 million.
Ramon questions how workers can cope with rising food costs and sustain savings with such a marginal wage increase.
Labor activists highlight the contrast between the modest wage hike for workers and the 8% salary increase for civil servants and 12% pension rise scheduled for January 2024.
The dissatisfaction among workers in Kepri regarding the minimum wage increase signals ongoing economic challenges in the region. This unrest may affect regional stability and cross-border economic relations, particularly with neighboring Singapore, which has strong business ties with Kepri.
Workers in Kepri are protesting the newly announced 3.76% rise in the minimum wage for 2024, arguing it falls short of living cost increases and is not in line with salary hikes for public sector employees. The labor community’s pushback reflects a broader call for equitable wage policies in Indonesia.
Source: AlurNews (2023)
