Politics
Indonesian unions expect higher wages after court ruling
JAKARTA (Nov 1): Indonesian worker groups welcomed a Constitutional Court ruling they say should lead to an increase in the minimum wage next year, with officials claiming victory on Friday, even as parts of their petition challenging a controversial labor law was rejected.
On Thursday evening, the court ordered changes to some labor rules, including the establishment of sectoral minimum wages and clearer rules on outsourcing, after unions challenged the laws.
The petition was filed against the Job Creation Law, introduced by former President Joko Widodo to improve the country's investment climate. The law sparked protests from labor and environmental groups, who viewed it as too pro-business.
“This is a victory for the people. The decision is proof that the state protects the people,” said Said Iqbal, chairman of the Labor Party, a major union and political party that was among the petitioners. Reuters.
The court order setting sectoral minimum wages would pave the way for higher wages for skilled workers, he said.
Andi Gani, president of the KSPSI union, also said the new wording is expected to increase the minimum wage for next year.
The Indonesian Employers' Association (Apindo) said it was still reviewing the decision and reiterated the importance of “synergy between employees and employers.”
While Apindo welcomed the decision which directed that a new manpower law be enacted within two years, Bob Azam, head of manpower affairs of the body, said declared Reuters the process must involve both employees and employers.
Labour's Said noted that although the court rejected the request to change the way minimum wage increases are calculated, the ruling highlighted the possibility that workers' basic needs could be considered alongside the economic growth and inflation, which could also lead to higher wages. increases next year.
The government is expected to announce the minimum wage for next year before the end of 2024. KSPSI's Andi also welcomed the decision that the Labor Ministry should clarify what types of jobs could be outsourced and limit such contracts to a maximum of five years.
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