Wage & Minimum Living Needs

In relation with Minimum Wage Year 2005 which will be regulated by Governor, herewith, the following issues are informed:

1. The National Wage Research Council (DPPN) in their session on July 8, 2004 decided to propose the Government to conduct profound research on the concept of Decent Living Needs (KHL). Therefore, the direct survey to employee/ worker living needs will be conducted so that the Decree of Minister of Manpower and Transmigration concerning Components and Implementation Phases in Achieving Decent Living Needs(KHL) is not ready to be published soon.
2. Up till now, there are only 11 (eleven) Provinces that set Minimum Wage (year 2004) up to 100% of Minimum Living Needs (KHM).

In relation with the issues above, your ( Governor’s) cooperation and attention are required as follows:

1. The basis of consideration in regulating Minimum Wage year 2005 still use Minimum Living Needs (KHM) as stipulated in Permenaker No.01 Year 1999 concerning Minimum Wage jo. Kepmennakertrans No. 226 Year 2000.
2. Hopefully, the rate of Minimum Wage for the Year 2005, which will be regulated by Governor for Province and Residence/ City, will be equal to the rate of KHM in respective district.
3. The time of decision by Governor shall be in accordance with prevailing provisions as regulated in Article 4 Kepmennakertrans No.226 year 2000.

Thus ends this letter. Thank you for your attention and cooperation.

CC:

1. President of RI (as the report)
2. Vice President of RI (as the report)
3. The Ministers of ‘Gotong Royong’ Cabinet
4. Director General Industrial Relation Development of Department of Manpower and Transmigration.
5. The Heads of Manpower Offices in all Indonesian Provinces
6. The Assembly of Research on National Wage Matter (DPPN)
7. The District Assembly/ Committee of National Wage Matter in entire Indonesia;
8. General Chief of DPP APINDO.
9. General Chief of DPP of Labour Union