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Indonesia to review minimum wage rules after protests over fuel price hikes

JAKARTA (Reuters) – Indonesia will review minimum wages and other labor rules, the Indonesian president’s office said on Tuesday, after unions staged nationwide protests against recent oil price hikes, they said, despite stagnant incomes. .

President Joko Widodo raised the price of subsidized fuel in Southeast Asia’s largest economy by 30 percent earlier this month to rein in The rising energy subsidy budget has sparked protests from workers and students across the country.

Rising fuel prices will accelerate inflation, which has reached its highest level since 2015 due to the rise in food prices.

Chief of the Office of the President, Heru Budi Hartono, met protesting workers at the presidential palace in central Jakarta on Monday to discuss their demands.

Referring to the controversial legislation in a statement, Heru said workers were calling for changes to the formula the government uses to determine annual increases in minimum wages and changes to controversial job creation laws passed by unions that were deemed too Pro-business 2020.

Heru said the authorities will review the workers’ demands on Tuesday.

With 2021 growth and inflation continuing to be affected by the pandemic, the national

minimum wage has risen on average by only 1. 09% 2022 Millions, media reports.

KSPSI did not respond to Reuters’ request for comment.

KSPI, another labor group that has been organizing rallies, will continue to protest until the government scraps the fuel price hike, its chairman Syed Iqbal told Reuters on Tuesday.



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