Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-g8jcs Total loading time: 0 Render date: 2024-11-26T03:31:09.599Z Has data issue: false hasContentIssue false

Appendix 1: The Politics of Wages and Indonesia's Trade Unions

Published online by Cambridge University Press:  23 January 2020

Get access

Summary

On 1 April 2017, thirteen trade unions, having formed a coalition, signed a “Political Contract” with two candidates in the Jakarta gubernatorial elections. These thirteen unions then gave their support to Anies Baswedan and Sandiaga Uno, candidates nominated by the Partai Keadilan Sejahtera (PKS) and GERINDRA, the party headed by the 2014 presidential candidate, Prabowo Subianto. These unions included the Konfederasi Serikat Pekerja Indonesia (KSPI), Federasi Serikat Pekerja Metal Indonesia (FSPMI), and Serikat Pekerja Nasional (SPN), among others. The KSPI and FSPMI leaderships had been supporting the GERINDRA-PKS coalition since the 2014 presidential elections. Between 2010 and 2013, the KSPI and FPSMI had been the vanguard of a series of annual campaigns for increases in the minimum wage and ending the widespread use of labour hire (called “outsourcing”).

The points included in the Political Contract covered wages, labour hire, housing, public transport, unemployment social insurance, education, the Jakarta Bay reclamation, the status of teachers, health insurance and workers cooperatives. The one point made on wages policy was as follows:

To decide the Jakarta DKI minimum wage higher than that determined by Government Regulation No 78 2015 about Wages, through the Wage Council mechanism, and to set sectoral wage scale and structure based on Law 13 2003 on Labour.

Anies Baswedan and Sandiaga Una won the elections—for many reasons beyond the wages issue—and were sworn in as governor and vice-governor on 16 October 2017. Two weeks later, on 1 November, the new governor signed-off on the minimum wage for 2018. He did not conform to the wages policy point in the Political Contract but determined a wage increase based on Regulation 78/2015, not higher. The new minimum wage was determined as Rp3,648,035, an 8.7 per cent increase on the previous year. The unions were asking for Rp3,917,398.

As a consequence of this decision, the thirteen unions held a press conference and declared that they were withdrawing their support for Anies Baswedan. The president of the KSPI and FSPMI, Said Iqbal, even compared Baswedan unfavourably with former governor and now prisoner Basuki Basuki Tjahaja Purnama, saying that the latter was a more honourable man than Baswedan. During the gubernatorial campaign, Iqbal had been very critical of Purnama on a range of issues, and had merged his unions with major protests that were calling for Purnama to be arrested for humiliating Islam.

Type
Chapter
Information
Publisher: ISEAS–Yusof Ishak Institute
Print publication year: 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×