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FSPM Campaigns for 10% Increase to Minimum Wage for HRCT Sector Workers in Jakarta

The IUF-affiliated Independent Federation of Hotel and Allied Unions (FSPM) is campaigning for a 10% increase for HRCT (hotel, restaurant, catering, tourism) workers to the Jakarta provincial monthly minimum wage. As part of the campaign, this demand was submitted by 10 FSPM officers at a meeting held by DISNAKERTRANS (the Provincial Office of Labour and Transmigrasion) in Jakarta, 2 November 2007. FSPM delegates have indicated that FSPM members will undertake rallies and industrial actions on New Year's Eve should the demand be ignored.

A representative of the Jakarta Provincial Office of Labour and Transmigrasion, Sumanto, noted that the demand had been received, but refused to comment on whether or not it would be accepted. FSPM’s demand will be discussed at the next tripartite Jakarta Wage Council meeting which will be attended by delegates from provincial government, HRCT unions, and HRCT employers associations.

The new Jakarta provincial monthly minimum wage, which will come into effect in 2008, is Indoensian Rupiah (Rp) 972,604 (US$108). The 10 percent increase to the base minimum wage demanded by FSPM would give Jakarta tourism workers a monthly minimum wage of around Rp1.07 million (US$119). Although that is the highest in Java, the amount is still under the decent life index issued by local research institutes. FSPM Jakarta regional secretary, Dewi Fitriana, comment that, "FSPM’s demand is reasonable, considering HRCT sector is a high income sector." According to the Central Statistics Bureau (BPS), tourism in Jakarta alone brought US$1.08 billion in foreign exchange to Indonesia in 2005.