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Most provincial administrations postpone decision on UMP.

The majority of provincial administrations have postponed decision on minimum wage (UMP) in 2014 as rule in the presidential instruction of No. 9/2013 and Permenakertrans No. 7/2013 on 1 November 2013. Based on data at the directorate general of industrial relation development and workers social security, only 14 of the country's 34 provinces have announced UMP, whereas all provincial wage councils already submitted wage recommendations to the governors. East Java is one of the provinces not yet decided the UMP. The East Java administration has not determined the UMP as the regencies and cities in the province have different characteristics. Wage reference in the province is based on the decisions of the regencies/districts.

Irianto Simbolon, the director general of industrial relations development and worker social security, blamed the recent big strike for the delay in the implementation of UMP until 2014 from Nov. 1, 2013. Among the provinces which have determined their UMP, Jakarta has the highest at Rp2.44 million or an increase of 10.9% from 2013. The UMP in West Nusa Tenggara is the lowest at. The association of Indonesian business leaders (Apindo)suggested that employers especially among the small and medium enterprises (UMKM) that could not fulfill the UMP submit proposal for dispensation to governors. Apindo chairman Sofjan Wanandi said based on experience many UMKM could not pay their workers according to the UMP ruling.
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Publication:Indonesian Commercial Newsletter
Date:Sep 1, 2013
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