The ITUC-AP strongly condemns the Government of Indonesia for its unilateral introduction of a draft regulation on minimum wage setting, without proper consultation of stakeholders, specifically with trade unions. This exclusion in the negotiation process goes against the promotion of social dialogue and union efforts to improve the minimum wage base, contravening the ILO Convention No. 131 (1970), and defies articles 88 and 89 of the Labor Law No. 13 (2013) -- where the government shall set the minimum wage based on the needs of decent living.
As fair minimum wage is crucial to increase domestic purchasing power, the ITUC supports affiliates in Indonesia for their action in creating a united front and mobilizing union members against this government action. The ITUC also urges the Government of Indonesia to fully respect social dialogue based on tripartite consensus on the workers’ issue including minimum wage setting negotiation, and to withdraw the unilaterally proposed amendment immediately.