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Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
 
ANALYSIS FOR OVERWHELMING ISSUES IN THE DECISION AND 
IMPLEMENTATION OF MINIMUM WAGE STANDARD IN INDONESIA 
Tri Sulistiyono 
Faculty of Law – Semarang State University 
Sekaran Campus, K-1 Building, Gunungpati, Semarang 50229 Indonesia 
e-mail: sulistiyonotri@ymail.com HP. 62. 08562670035 
ABSTRACT 
The minimum wage standard, constantly renewed and announced annually 
through a governor decree in each province, however always leads to 
demonstrations from the labor/employee organization that strongly disagree 
about the result. Ironically, the protests are repeatedly staged each year from the 
regency/municipality/province to the state level. Some regulations on minimum 
wage standart have been formulated such as: the Law Number 13 of 2003 
concerning manpowership and the regulation from Ministry of Manpower and 
Transmigration Number 7 of 2013 about the minimum wage standard, however 
the conflicts, pros and cons against the decision are unavoidable. This paper 
address to solved for overwhelming issues in the decision and implementation 
minimum wage standart in Indonesia. The result of this study, a comprehensive 
effort to deal with and reduce conflicts in minimum wage standard decision is 
deemed essential. This is inextricably linked to the role of government, 
employer organization and labor/employee union. The calculation and survey of 
decent living as the basis of minimum wage standard are carried out in 
accordance to the prevailing rule and methodology. The optimization of both 
bipartite and tripartite cooperation institutions is necessary in order to enhance 
openness between employer and workers during socialization and dialogue 
process. More importantly, a clear and understandable waging structure/scale in 
each company shall be created here. All in all, the strict supervision and law 
enforcement shall be performed if the decision of minimum wage standard is 
violated through referring to the prevailing regulations. 
Keywords: Minimum wage standard; bipartite and tripartite cooperation 
institutions; law enforcement 
A. INTRODUCTION 
As urged in Indonesian constitution, people welfare and decent living standard are 
profoundly necessary, stated in the Article 27 of 1945 Constitution, Clause (2): “Every citizen 
deserves a decent job and living for the sake of humanity”. The values are reaffirmed in the 
Chapter XA concerning human right in Article 28D of clause (2): “Every people have the right to 
work, obtain wage and equal as well as proper treatment in the workplace”. In this regard, the 
government shall perform their duty to protect the welfare and proper waging as the right of 
workers. The protection, furthermore, includes the decision of minimum wage standard re-updated 
annually thus the amount of wage shall not be determined merely by the employer/business owner. 
A number of legislative provisions have been formulated as a response for the minimum 
wage standard decision, including Law Number 13 of 2003 about workforce; the regulation of 
Ministry of Manpower and Transmigration Number 13 of 2012 regarding the components and 
implementation of decent living standard; not to mention the regulation Number 7 of 2013 
concerning the minimum wage. Although various regulations have been enacted, workers still 
demonstrated their opposition to the wage standard increase.
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
Demonstrations occurred in several areas including on 21 December 2013 in Karanganyar, 
hundreds of workers/labors allied in the Confederation of Indonesian Workers' Union in 
Karanganyar Regency demanded the abolition of insufficient wage for workers, restoration of 
welfare and increase of minimum wage. It also occurred in Demak Regency on 24 September 
2013, thousands of workers/labors demonstrated the increase of minimum wage there up to Rp. 
2.700.000,- and the abolition of the outsourcing system. In that action, they blockaded a highway 
resulted in the congestion of Semarang-Surabaya traffic lane. A sequence of demonstrations 
happened in front of House of Representative Building of Semarang municipality likewise on 20 
November 2013 in which their primary agenda was to ask for 100% increase of minimum wage 
for decent living standard and oppose the President's instruction Number 9 of 2013 regarding the 
policy to determine the minimum wage (radar online Indonesia.com). 
On the other hand, the employers allied in an association namely Apindo in all over 
Indonesia also expressed their disapproval if the minimum wage standard was too high as 
demanded by workers. They argued that the company's financial state could not afford to allocate 
higher wage, particularly the small medium enterprise. They, furthermore, threatened the closing 
of their companies if the labor/worker demand was skyrocketing. 
 
Here is the data of the strike in various parts of Indonesia in2011-2013: 
Table 1: Strike in Indonesia by Province 
in 2011- 2013 
No. 
Provinces 
CASE 
WORKERS INVOLVED 
THE LOSS OF WORKING 
HOURS 
2011 2012 2013 2011 2012 2013 2011 2012 2013 
1 Aceh 4 - - 933 - - - - - 
2 Sumatera Utara 3 - - 480 - - 3.360 - - 
3 Sumatera Barat 1 - 2 80 - 700 - - 32 
4 Riau 1 - 1 320 - 200 56.000 - 7 
5 Jambi 1 - 5 582 - 1.400 1.746 - - 
6 Sumatera Selatan 1 1 - 900 2.000 - 72 4.000 - 
7 Bengkulu 3 - 1 1.150 - 330 8.050 - - 
8 Lampung - 4 - - 12 - - - 
9 Bangka Belitung 3 3 - 253 1.858 - 87 180 - 
10 KepulauanRiau - - - - - - - - 
11 DKIJakarta - - 5 - - 130 - - - 
12 JawaBarat 19 1 117 8.755 35 6.941 130.123 - 4.473 
13 JawaTengah 11 5 10 1.246 375 5.441 8.679 7.458 - 
14 DI.Yogyakarta - 2 - - 315 280 - - - 
15 JawaTimur 31 - 11 13.768 - 3.019 - - - 
16 Banten 33 - 25 12.002 - 6.426 7.921 - 79.788 
17 Bali 1 - - 164 - - - - 116 
18 Nusa Tenggara Barat 10 - - 835 - - 218 - - 
19 Nusa Tenggara Timur 1 - - 163 - - 147 - - 
20 KalimantanBarat 12 6 10 3.478 452 200 1.170 2.907 1.600 
21 KalimantanTengah 5 2 4 1.276 274 1.027 119 21 98 
22 Kalimantan Selatan 2 - - 390 - - 48 - - 
23 KalimantanTimur 15 - - - - - - - - 
24 Sulawesi Utara 3 1 4 132 7 827 3.798 35 2.581 
25 Sulawesi Tengah 2 4 4 - 1.103 926 - 4.167 23.165 
26 Sulawesi Selatan 9 7 30 859 449 2.876 6.013 4.103 11.947 
27 Sulawesi Tenggara 3 3 6 132 510 642 3.798 3.381 7.179 
28 Gorontalo 9 - - 412 - - 1.513 - - 
29 Sulawesi Barat 3 - - 186 - - - - - 
30 Maluku - - - - - - - - - 
31 MalukuUtara 9 9 2 365 363 780 24 1.789 20
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
32 Papua Barat - - - - - - - - - 
33 Papua 1 3 2 6.000 6.000 64 832 832 - 
Jumlah 196 51 239 54.861 13.753 32.209 233.718 28.873 131.006 
 
Courtesy :Ditjen. PHI andJamsostek 
Based on the data in the table above, it shows that many regions in Indonesia hold a 
demonstration / strike every year, which resulted in the loss of working hours. It can certainly 
reduce the productivity of the related company. 
Reviewing the aforementioned phenomena, the government likely has to deal with 
perplexing choices to accommodate the interest of workers and employers in deciding and 
implementing minimum wage standard. This article attempts to provide an implementable solution 
to cope with multifaceted issues in that case. A comprehensive effort/solution is necessary to solve 
and minimize conflicts in the minimum wage standard decision and implementation. Of course, 
the role of government here is inextricable from the existence of employers as well as 
workers/labors. 
B. DISCUSSION 
1. The Provision and Mechanism to Determine the Minimum Wage 
Wage is defined as the right of workers/labors received and stated in the form of money as 
the payment from the employers or business owners which is determined and paid according to a 
contract, an agreement or legislative provisions, including the support for individuals and family 
for the work and/or service that has been conducted (Article 1 Number 30 of Law Number 13 of 
2013). The amount of wage is definitely calculated in line with the living standard. Therefore, the 
government shall regulate the decision of the lowest limit given by employers to their workers. 
The minimum wage standard provision is not only implemented in Indonesia but also in 
international setting in accordance with each country's condition under the International Labor 
Organization (ILO) framework. Several provisions enacted by ILO include Regulation Number 26 
of 1928 regarding the mechanism to determine the minimum wage and ILO Convention number 
131 of 1970 as well as the recommendation number 135 of 1970 about the minimum wage 
standard decision in the developing countries (Soedarjadi, 2008:76). 
Indonesia has implemented the minimum wage standard mechanism and formulated it into 
workforce regulations such as in Law Number 13 of 2003 about the workforce (Article 88-92) and 
the regulations from Ministry of Manpower and Transmigration Number 7 of 2013. The term is 
defined as the minimum monthly payment which consists of primary wage including the 
permanent subsidy. As a result, the minimum wage does not include temporary subsidy such as: 
attendance cost, meal and transport given based on their presence. This mechanism is in effect for 
the workers with less than one year experience. Unfortunately, both provisions are not socialized 
well to workers and employers. Consequently, some misunderstandings have occurred including 
the inequality of workers' payment to the minimum wage standard regardless their employment 
period or the inclusion of subsidy in the wage calculation. 
The division of minimum wage standard category is stated in Law Number 13 of 2003 in 
Article 89 Clause 1 (a) and (b) viz.: 
1. The minimum wage is determined in accordance with the province or 
regency/municipality. 
2. The minimum wage is determined in accordance with the sectors in that province 
or regency/municipality. 
Meanwhile, based on the regulation from the Ministry of Manpower and Transmigration Number 
7 of 2013 on Article 1, the minimum wage consists of minimum wage in the province, 
regency/municipality, sectoral minimum wage in the province, regency/municipality. The
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
minimum wage in the province is in effect for all regencies/municipalities in a province whereas 
the sectoral minimum wage in the province is in effect in all regency/municipality sectors. What is 
regarded as minimum wage in a regency/municipality is only enacted in that area or that sector. 
Upon the decision of minimum wage standard, the governor shall refer to the Law Number 13 of 
2003 about Manpower; the President's decree Number 107 of 2004 regarding the Wage 
Commission; Regulation from the Ministry of Manpower and Transmigration Number 13 of 2012 
concerning the components and implementation of decent living standard; and the Regulation 
from the Ministry of Manpower and Transmigration Number 7 of 2013 about the minimum wage. 
In Article 89 Clause (3) of Manpower Regulation is stated that the minimum wage shall be 
determined the governor by taking into account the recommendations made by Provincial 
Remuneration Committee as stated in Article 21 Point (a) Clause 1 and 2 of President's decree 
regarding the role of Remuneration Committee: “The Provincial Remuneration Committee is 
responsible for providing suggestions and considerations for the governor in order to determine 
the minimum wage in a province and a municipality. The similar view is stated in Clause 2, point 
5 (a) in President's instruction is stated that the governor particularly determines the minimum 
wage in accordance to the recommendation from the Remuneration Committee in each province. 
In Article 89 Clause (2) and (4) of Manpower Regulation, the minimum wage shall be directed 
towards the achievement of prosperous life and its components in which the stages are regulated 
by Ministry of Manpower and Transmigration namely law Number 13 of 2012 about the 
components and implementation of decent living standard, and in line with Article 3 Clause (4) 
concerning the Ministerial Regulation Number 7 of 2013 about the minimum wage that the decent 
living standard is based on the governor's decision. It shall consider the following points: decent 
living standard, consumer's price index; ability of company's continuation; wage in a particular 
area; condition of job market; economical level and gross domestic product. 
There are some important points in the latest calculation of wage and decent living components 
according to the Regulation of Manpower and Transmigration Ministry Number 13 of 2012, i.e.: 
1. There is an improvement of decent living standard from 46 to 60 components including: an 
addition of 14 new components, an adjustment/addition of quality and quantity of decent 
living standard and a change of need type. 
2. This regulation has been in effect since 12 July 2012. Consequently, the decent living 
standard is drafted and formulated through surveys, led by the local institutions to support 
its performance and Regency/Municipality Remuneration Committee. 
3. The regulation from Ministry of Manpower and Transmigration Number 13/2012 is 
enacted as one of the considerations to determine the wage minimum standard in the 
following year which means the stakeholders shall take it into account as the basis of 
minimum wage decision. 
4. The regulation from Ministry of Manpower and Transmigration Number 17/2005 is not in 
 
effect so that each element of workforce was not based on this rule as its basis. 
The other important point regulated is the amount of decent living standard determined by the 
Head of Remuneration Committee and reported to the governor regularly (monthly); whenever the 
decent living standard is calculated per month, the governor shall receive the report. The survey 
team according to the Ministerial Regulation Number 13 of 2012 at least consists of 5 people: 
tripartite element (worker-employer-government), expert and central statistics body.
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
 
2. The Optimization of Bipartite and Tripartite Cooperation Institution 
The existence of Bipartite Institution is regulated in Law Number 13 of 2003 regarding the 
workforce and decision from the Ministry of Manpower and Transmigration Number 
Kep.255/Men/2003 about the Mechanism to Form and Structure of Membership of Bipartite 
Cooperation Institution. In Article 1 point 18, Law Number 13 of 2003 is explained the definition 
of bipartite cooperation institution as the communication and consultation forum regarding 
industrial relationship in a particular company whose membership consists of the employer and 
registered workers/labors under the responsible institution. Furthered in Article 106 Clause (1) of 
Law Number 13 of 2003, every company employing more than fifty workers/labors is required to 
establish a bipartite cooperation institution. 
Its members consist of employer and workers/labors element appointed democratically by the 
workers/labors to represent them in the related company (Article 106, Clause (3) of Law Number 
13 of 2003). Meanwhile its organization structure shall include at least a chief, a secretary and 
members. The chief position can be occupied in turn between the representative of employer and 
the representative of workers/labors (Article 10, Clause (1) and (2) Kep.255/Men/2003). The 
membership of bipartite cooperation institution is determined by the employer and workers/labors 
from the composition of 1:1 in accordance with the provision of at least six people and maximum 
twenty members (Article 9 of Kep255/Men/2003). Its duration is 2 years and shall be registered in 
the workforce institution in the regency/municipality. 
The duties of bipartite cooperation institution are: 
1. Periodically conduct meetings (or whenever necessary). 
2. Communicate the polity of employer and aspirations of workers/labors related to the 
welfare of workers/labors and the continuation of that business. 
3. Early detect and accommodate the issues of industrial relationship in that company. 
4. Channel recommendations and opinions to the workers/labors and/or the worker/labor 
union. 
Five of them shall be optimized by bipartite cooperation institution in order to create conducive 
workplace including during the minimum wage standard decision related to its annual renewal by 
creating structure/scale of waging. Through this institution, workers and employer will be able to 
express their thoughts and opinions as well as transparent information including the financial 
report of that company so that trust and bond for the continuation of that company will be 
enhanced. Therefore, conflicts will be avoided as the communication and kinship are developed 
well including in a small enterprise that is currently unable to offer high payment due to their 
limited ability. 
In this regard, tripartite cooperation institution role is as the communication, consultation and 
discussion forum regarding the workforce issues whose memberships consist of employer 
organization, worker/labor union and government. Established in the state, province and 
regency/municipality level, this institution aims at providing suggestions and opinions for the 
government and related stakeholders in formulating a policy and a solution for workforce issues. 
Here is the data of Tripartite Cooperation Institution in Indonesia in each district/city:
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
 
Table 2: Tripartite Cooperation 
Institution in Indonesia by Province 
and District/City 
In 2011 - 2013 
NO 
PROVINCE 
Tripartite Cooperation Institution 
2011 2012 2013 
Province District/City Province District/City Province District/City 
1 Aceh 1 7 1 7 1 8 
2 Sumatera Utara 1 10 1 14 1 14 
3 Sumatera Barat 1 7 1 8 1 11 
4 Riau 1 11 1 11 1 13 
5 Jambi 1 6 1 6 1 7 
6 Sumatera Selatan 1 8 1 8 1 8 
7 Bengkulu 1 5 1 5 1 6 
8 Lampung 1 6 1 7 1 7 
9 Bangka Belitung 1 3 1 6 1 7 
10 Kepulauan Riau 1 6 1 6 1 7 
11 DKI Jakarta 1 1 1 1 1 9 
12 Jawa Barat 1 27 1 27 1 27 
13 Jawa Tengah 1 33 1 35 1 35 
14 DI. Yogyakarta 1 5 1 5 1 6 
15 Jawa Timur 1 26 1 27 1 27 
16 Banten 1 5 1 7 1 8 
17 Bali 1 9 1 9 1 9 
18 Nusa Tenggara Barat 1 7 1 7 1 7 
19 Nusa Tenggara Timur 1 4 1 4 1 4 
20 Kalimantan Barat 1 14 1 14 1 14 
21 Kalimantan Tengah 1 2 1 2 1 9 
22 Kalimantan Selatan 1 6 1 6 1 8 
23 Kalimantan Timur 1 8 1 8 1 12 
24 Sulawesi Utara 1 3 1 3 1 8 
25 Sulawesi Tengah 1 7 1 7 1 7 
26 Sulawesi Selatan 1 6 1 7 1 7 
27 Sulawesi Tenggara 1 5 1 4 1 7 
28 Gorontalo 1 2 1 2 1 2 
29 Sulawesi Barat 1 1 1 1 1 1 
30 Maluku 1 2 1 2 1 2 
31 Maluku Utara 1 1 1 - 1 - 
32 Papua Barat 1 1 1 1 1 1 
33 Papua 1 1 1 9 1 9 
Jumlah 33 245 33 266 33 307 
Courtesy : Ditjen. PH Iand Jamsostek 
Based on the data above, it shows that not all district/city has Tripartite Cooperation 
Institution, so that it is necessary to hold the Tripartite Cooperation Institution to overcome many 
problems about employment and the minimum wages. 
The responsibilities of tripartite cooperation include: 
1. Establish good communication and cooperation among the government, workers and 
employer.
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
 
2. Accommodate, formulate and solve problems related to workforce issues. 
3. Maintain reciprocal communication, information and consultation in working relationship 
among three tripartite elements. 
4. In its relation to other tripartite bodies, provide reciprocal information and consultation 
with local and sectoral tripartite. 
The optimization of tripartite cooperation institution for four roles above is necessary during the 
process of minimum wage standard decision. This institution can provide feedback and 
recommendation including the prevention for multifaceted issues in each area. The socialization of 
wage provision for the employer and workers shall be carried out. It includes the dissemination of 
information that the minimum wage consists of primary wage and permanent subsidy in which 
temporary subsidies such as meal and transport fee based are not included and the minimum wage 
is in effect for workers with less than one year experience. 
3. The Supervision and Law Enforcement for the Implementation of Minimum Wage 
Standard 
Labor inspection was conducted by labor inspectorsin each district / city region of each 
work place, the following is the supervisory employee data region of Indonesia: 
Table 3: Supervisors and investigators of Labour In Indonesia by Province in2013 
NO. 
DISTRICT / CITY 
GENERAL 
SPECIALTY 
TOTAL 1 2 3 4 5 6 7 8 9 10 11 
1 Aceh 28 - - - - - - - - - - - 28 
2 SumateraUtara 84 1 - - - - - 1 - - - - 86 
3 SumateraBarat 29 2 1 - 1 1 1 1 - - 1 - 37 
4 Riau 30 - 1 - - - - - - - - - 31 
5 Jambi 25 - - - - 1 - - - - - - 26 
6 SumateraSelatan 39 2 1 - 1 - - - - - - - 43 
7 Bengkulu 17 - - - - - - - - - - - 17 
8 Lampung 15 1 2 - - - - - - - - - 18 
9 Kep.BangkaBelitung 10 1 - - - - - - - - - - 11 
10 KepulauanRiau 34 - - - - - - - - - - - 34 
11 DKIJakarta 100 - - - - - - - - - - - 100 
12 JawaBarat 152 7 10 1 1 2 2 3 - - - - 178 
13 JawaTengah 171 10 2 - 4 15 1 19 1 1 - - 224 
14 DaerahIstimewaYogyakarta 21 - 1 - - 1 - - - - - - 23 
15 JawaTimur 138 5 7 - 3 1 1 4 1 - - - 160 
16 Banten 58 2 1 - 1 1 - - 3 - - - 66 
17 Bali 17 - - - - - - - - - - - 17 
18 NusaTenggaraBarat 16 - - - - - - - - - - - 16 
19 NusaTenggaraTimur 18 - - - - - - - - - - - 18 
20 KalimantanBarat 15 - - - - - - - - - - - 15 
21 KalimantanTengah 31 - - - - - - - 1 - - 1 33 
22 KalimantanSelatan 23 2 1 - - 2 1 - - - - - 29 
23 KalimantanTimur 33 2 2 - - 1 - 2 2 - - - 42 
24 SulawesiUtara 30 - 3 - - - - - - - - - 33 
25 SulawesiTengah 16 - - - - 1 - - - - - - 17 
26 SulawesiSelatan 48 1 3 - 1 1 - - - - - - 54 
27 SulawesiTenggara 18 - 4 - - 1 - - - - - - 23 
28 Gorontalo 8 1 - - 1 1 - - - - - - 11 
29 SulawesiBarat 7 - - - - - - - - - - - 7 
30 Maluku 12 - - - - - - - - - - - 12 
31 MalukuUtara 7 - - - - - - - - - - - 7 
32 PapuaBarat 11 - - - - - - - - - - - 11 
33 Papua 18 - - - - - - - - - - - 18
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
DitjenPPK 155 - - - - - - - - - - - 155 
JUMLAH 1.279 37 39 - 13 29 6 30 8 1 1 1 1.445 
Courtesy:DitjenPPK, analizedPusdatinaker 
Notes:*)1. Employment, 2. Working Time and Rest Time, 3. Wages,4. Social security of employment, 5.Placement 
and Training, 6.Aircraft Steam and Pressure Vessel, 7. Aircraft Lift Transports, 8. Aircraft Power  Production, 
9.Electricity and lifts, 10.Prevention of Fire, 11.Occupational Health, 12. BuildingConstruction , 13. Working 
Environmental, 14. Chemical 
Based on the data in the table above, it shows that the number of field inspectors wage is 
 
still a little bit, so that it cannot carry out their duties in overseeing the entire companies in 
Indonesia. 
The strict supervision and law enforcement for the implementation of minimum wage standard 
shall be conducted by the designated institution; in this case, the direct involvement of workforce 
department in each area is essential. The legislative provision related to the minimum wage 
standard shall be clear including: 
1. Article 90, Clause (1) of Law Number 13 of 2003 regarding the workforce states that the 
employer is prohibited to pay the wage lower than the standard. 
2. Article 185, Clause (2) of Workforce Law mentions the agreement (between 
workers/labors and employer) that paying lower wage from the standard (without the 
postponement approval from the responsible body) is the form of criminal violation with 
the threat of imprisonment for 1 (one) to 4 (four) years and/or a fine between Rp. 
100.000.000,- (one hundred million rupiah) to Rp. 400.000.000 (four hundred millions 
rupiah). 
3. Article 52, Clause (1) Section (d) and Article 52, Clause (3) of Workforce Law and 
Article 1320, Clause (4), Article 1337 of Civil Conduct states that the agreement in a 
contract, including in workplace shall not contradict to the legislative provisions. In other 
words, the agreement among stakeholders shall be rightful and not illegal. As a result, the 
contract offering wages lower than the standard is prohibited. 
According to the above provisions, an agreement (between workers/labors and employer) is of 
course not the only basis of wage payment. What is possible to be carried out here is performing 
efficient tasks in all aspects in order to enhance productivity. 
Principally, the amount of minimum wage determined by the governor for a certain period is not 
the basis of payment for all workers/labors in the related company. It is just the wage standard for 
particular workers/labors namely: 
1. On the lowest position or work (Article 92 Clause (1) regarding the workforce law, Article 
1 Section 2 of Ministry of Manpower and Transmigration Decision Kep49/Men/IV/2003 
regarding the structure and scale of leveled wage). 
2. Work period from 0 to 1 (one) year (Article 14 Clause (2) of Ministerial regulation Per- 
01/Men/1999); and/or: 
3. Marital Status as Single (Article 1 Clause 1 of Ministerial Regulation Number 13 of 2012). 
As a result, for workers/labors whose job position is not the lowest, his employment period is 
more than 1 (one) year and/or has (official) burdens, their wage is, of course, not equal to the 
minimum standard. In fact, it shall be higher in accordance to the waging structure and scale 
(Article 1 Clause 2 and 3 Ministerial Regulation Kep-49/Men/IV/2003). 
The supervision for minimum wage implementation is conducted by the staffs in the department 
of Manpower and Transmigration in regency/municipality as well as province level. Their role is
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
to supervise and enforce the workforce provisions including the implementation of minimum 
wage standard. In this regard, they shall investigate whether or not the waging structure and scale 
have existed; if the system has not been created yet, the staffs in the referred department shall 
assist its creation and implementation. Consequently, law enforcement will be performed if the 
company does not demonstrate good willingness to implement the provision as regulated in 
provisions above. 
	 
C. CONCLUSION 
The minimum wage standard decision is made to protect workers/labors in the lowest 
position with working period less than 1 (one) year thus longer period shall be grated higher 
payment according to the waging structure/scale. The conflicts due to wage standard decision shall 
be solved and minimized. Definitely, the role of government, employer organization and 
worker/labor union is fundamental. The calculation and survey of decent living as the basis of 
minimum wage standard are carried out in accordance to the prevailing rule and methodology. The 
optimization of both bipartite and tripartite cooperation institutions is necessary in order to 
enhance openness between employer and workers during socialization and dialogue process. More 
importantly, a clear and understandable waging structure/scale in each company shall be created 
here. All in all, the strict supervision and law enforcement shall be performed if the decision of 
minimum wage standard is violated through referring to the prevailing regulations. 
References: 
Asikin Zainal, dkk; Dasar-Dasar Hukum Perburuhan; Jakarta; PT Raja Grafindo Persada; 1994 
Budiono R Abdul; Hukum Perburuhan; Jakarta Barat; PT Indeks; 2011 
Husni Lalu; Pengantar Hukum Ketenagakerjaan Indonesia; Jakarta; PT Raja Grafindo Persada; 
2003 
Kartasaputra G; Hukum Perburuhan di Indonesia berdasarkan Pancasila; Jakarta; Sinar Grafika; 
1992 
Marbun Rocky; Jangan Mau di PHK Begitu Saja; Jakarta Selatan; Visi Media; 2010 
Rajagukguk P H; Peran Serta Pekerja Dalam Pengelolaan Perusahaan; Jakarta; Yayasan Obor 
Indonesia; 2002 
Soedarjadi; Hukum Ketenagakerjaan di Indonesia; Jakarta; Pustaka Yustisia;2008 
Soepomo Iman; Pengantar Hukum Perburuhan; Djambatan; 1976 
Wijayanti Asri; Sinkronisasi Hukum Perburuhan Terhadap Konvensi ILO; Bandung; Karya Putra 
Darwati Bandung; 2012 
Tim Redaksi Pustaka Yustisia; Kompilasi Hukum Ketenagakerjaan Dan Jamsostek; Yogyakarta; 
Pustaka Yustisia; 2010 
Halim Ridwan A; Hukum Perburuhan Dalam Tanya Jawab; Jakarta; Perling Jateng; 1983 
Tim Kompendium; Kopendium Hukum Bidang Ketenagakerjaan; Jakarta Timur; Badan 
Pembinaan Hukum Nasional Kementrian Hukum dan Hak Asasi Manusia RI; 2012 
Legislative Provisions 
1945 Constitution of Republic of Indonesia 
Law Number 13 of 2003 regarding workforce 
Law Number 2 of 2004 concerning the resolution for labor disputes 
Law Number 21 of 2000 about the worker/labor union 
Government Regulation Number 8 of 1981 regarding the wage protection 
President's decree Number 107 of 2004 about the Remuneration Committee 
President's Instruction Number 9 of 2013 about the policy to determine the minimum wage 
standard for the company continuation and labor welfare improvement
Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) 
Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 
President's regulation Number 21 of 2010 about the supervision for workforce 
Regulation from the Ministry of Manpower and Transmigration Number 7 of 2013 regarding the 
	
 
minimum wage 
Regulation from the Ministry of Manpower and Transmigration Number 13 of 2012 regarding the 
components and implementation of decent living standard 
Regulation from the Ministry of Manpower and Transmigration Number 1 of 2006 regarding the 
implementation of Article 3 of Ministerial Decision Number 231 of 2003 about the 
mechanism for minimum wage postponement.

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KLL4331

  • 1. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 ANALYSIS FOR OVERWHELMING ISSUES IN THE DECISION AND IMPLEMENTATION OF MINIMUM WAGE STANDARD IN INDONESIA Tri Sulistiyono Faculty of Law – Semarang State University Sekaran Campus, K-1 Building, Gunungpati, Semarang 50229 Indonesia e-mail: sulistiyonotri@ymail.com HP. 62. 08562670035 ABSTRACT The minimum wage standard, constantly renewed and announced annually through a governor decree in each province, however always leads to demonstrations from the labor/employee organization that strongly disagree about the result. Ironically, the protests are repeatedly staged each year from the regency/municipality/province to the state level. Some regulations on minimum wage standart have been formulated such as: the Law Number 13 of 2003 concerning manpowership and the regulation from Ministry of Manpower and Transmigration Number 7 of 2013 about the minimum wage standard, however the conflicts, pros and cons against the decision are unavoidable. This paper address to solved for overwhelming issues in the decision and implementation minimum wage standart in Indonesia. The result of this study, a comprehensive effort to deal with and reduce conflicts in minimum wage standard decision is deemed essential. This is inextricably linked to the role of government, employer organization and labor/employee union. The calculation and survey of decent living as the basis of minimum wage standard are carried out in accordance to the prevailing rule and methodology. The optimization of both bipartite and tripartite cooperation institutions is necessary in order to enhance openness between employer and workers during socialization and dialogue process. More importantly, a clear and understandable waging structure/scale in each company shall be created here. All in all, the strict supervision and law enforcement shall be performed if the decision of minimum wage standard is violated through referring to the prevailing regulations. Keywords: Minimum wage standard; bipartite and tripartite cooperation institutions; law enforcement A. INTRODUCTION As urged in Indonesian constitution, people welfare and decent living standard are profoundly necessary, stated in the Article 27 of 1945 Constitution, Clause (2): “Every citizen deserves a decent job and living for the sake of humanity”. The values are reaffirmed in the Chapter XA concerning human right in Article 28D of clause (2): “Every people have the right to work, obtain wage and equal as well as proper treatment in the workplace”. In this regard, the government shall perform their duty to protect the welfare and proper waging as the right of workers. The protection, furthermore, includes the decision of minimum wage standard re-updated annually thus the amount of wage shall not be determined merely by the employer/business owner. A number of legislative provisions have been formulated as a response for the minimum wage standard decision, including Law Number 13 of 2003 about workforce; the regulation of Ministry of Manpower and Transmigration Number 13 of 2012 regarding the components and implementation of decent living standard; not to mention the regulation Number 7 of 2013 concerning the minimum wage. Although various regulations have been enacted, workers still demonstrated their opposition to the wage standard increase.
  • 2. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 Demonstrations occurred in several areas including on 21 December 2013 in Karanganyar, hundreds of workers/labors allied in the Confederation of Indonesian Workers' Union in Karanganyar Regency demanded the abolition of insufficient wage for workers, restoration of welfare and increase of minimum wage. It also occurred in Demak Regency on 24 September 2013, thousands of workers/labors demonstrated the increase of minimum wage there up to Rp. 2.700.000,- and the abolition of the outsourcing system. In that action, they blockaded a highway resulted in the congestion of Semarang-Surabaya traffic lane. A sequence of demonstrations happened in front of House of Representative Building of Semarang municipality likewise on 20 November 2013 in which their primary agenda was to ask for 100% increase of minimum wage for decent living standard and oppose the President's instruction Number 9 of 2013 regarding the policy to determine the minimum wage (radar online Indonesia.com). On the other hand, the employers allied in an association namely Apindo in all over Indonesia also expressed their disapproval if the minimum wage standard was too high as demanded by workers. They argued that the company's financial state could not afford to allocate higher wage, particularly the small medium enterprise. They, furthermore, threatened the closing of their companies if the labor/worker demand was skyrocketing. Here is the data of the strike in various parts of Indonesia in2011-2013: Table 1: Strike in Indonesia by Province in 2011- 2013 No. Provinces CASE WORKERS INVOLVED THE LOSS OF WORKING HOURS 2011 2012 2013 2011 2012 2013 2011 2012 2013 1 Aceh 4 - - 933 - - - - - 2 Sumatera Utara 3 - - 480 - - 3.360 - - 3 Sumatera Barat 1 - 2 80 - 700 - - 32 4 Riau 1 - 1 320 - 200 56.000 - 7 5 Jambi 1 - 5 582 - 1.400 1.746 - - 6 Sumatera Selatan 1 1 - 900 2.000 - 72 4.000 - 7 Bengkulu 3 - 1 1.150 - 330 8.050 - - 8 Lampung - 4 - - 12 - - - 9 Bangka Belitung 3 3 - 253 1.858 - 87 180 - 10 KepulauanRiau - - - - - - - - 11 DKIJakarta - - 5 - - 130 - - - 12 JawaBarat 19 1 117 8.755 35 6.941 130.123 - 4.473 13 JawaTengah 11 5 10 1.246 375 5.441 8.679 7.458 - 14 DI.Yogyakarta - 2 - - 315 280 - - - 15 JawaTimur 31 - 11 13.768 - 3.019 - - - 16 Banten 33 - 25 12.002 - 6.426 7.921 - 79.788 17 Bali 1 - - 164 - - - - 116 18 Nusa Tenggara Barat 10 - - 835 - - 218 - - 19 Nusa Tenggara Timur 1 - - 163 - - 147 - - 20 KalimantanBarat 12 6 10 3.478 452 200 1.170 2.907 1.600 21 KalimantanTengah 5 2 4 1.276 274 1.027 119 21 98 22 Kalimantan Selatan 2 - - 390 - - 48 - - 23 KalimantanTimur 15 - - - - - - - - 24 Sulawesi Utara 3 1 4 132 7 827 3.798 35 2.581 25 Sulawesi Tengah 2 4 4 - 1.103 926 - 4.167 23.165 26 Sulawesi Selatan 9 7 30 859 449 2.876 6.013 4.103 11.947 27 Sulawesi Tenggara 3 3 6 132 510 642 3.798 3.381 7.179 28 Gorontalo 9 - - 412 - - 1.513 - - 29 Sulawesi Barat 3 - - 186 - - - - - 30 Maluku - - - - - - - - - 31 MalukuUtara 9 9 2 365 363 780 24 1.789 20
  • 3. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 32 Papua Barat - - - - - - - - - 33 Papua 1 3 2 6.000 6.000 64 832 832 - Jumlah 196 51 239 54.861 13.753 32.209 233.718 28.873 131.006 Courtesy :Ditjen. PHI andJamsostek Based on the data in the table above, it shows that many regions in Indonesia hold a demonstration / strike every year, which resulted in the loss of working hours. It can certainly reduce the productivity of the related company. Reviewing the aforementioned phenomena, the government likely has to deal with perplexing choices to accommodate the interest of workers and employers in deciding and implementing minimum wage standard. This article attempts to provide an implementable solution to cope with multifaceted issues in that case. A comprehensive effort/solution is necessary to solve and minimize conflicts in the minimum wage standard decision and implementation. Of course, the role of government here is inextricable from the existence of employers as well as workers/labors. B. DISCUSSION 1. The Provision and Mechanism to Determine the Minimum Wage Wage is defined as the right of workers/labors received and stated in the form of money as the payment from the employers or business owners which is determined and paid according to a contract, an agreement or legislative provisions, including the support for individuals and family for the work and/or service that has been conducted (Article 1 Number 30 of Law Number 13 of 2013). The amount of wage is definitely calculated in line with the living standard. Therefore, the government shall regulate the decision of the lowest limit given by employers to their workers. The minimum wage standard provision is not only implemented in Indonesia but also in international setting in accordance with each country's condition under the International Labor Organization (ILO) framework. Several provisions enacted by ILO include Regulation Number 26 of 1928 regarding the mechanism to determine the minimum wage and ILO Convention number 131 of 1970 as well as the recommendation number 135 of 1970 about the minimum wage standard decision in the developing countries (Soedarjadi, 2008:76). Indonesia has implemented the minimum wage standard mechanism and formulated it into workforce regulations such as in Law Number 13 of 2003 about the workforce (Article 88-92) and the regulations from Ministry of Manpower and Transmigration Number 7 of 2013. The term is defined as the minimum monthly payment which consists of primary wage including the permanent subsidy. As a result, the minimum wage does not include temporary subsidy such as: attendance cost, meal and transport given based on their presence. This mechanism is in effect for the workers with less than one year experience. Unfortunately, both provisions are not socialized well to workers and employers. Consequently, some misunderstandings have occurred including the inequality of workers' payment to the minimum wage standard regardless their employment period or the inclusion of subsidy in the wage calculation. The division of minimum wage standard category is stated in Law Number 13 of 2003 in Article 89 Clause 1 (a) and (b) viz.: 1. The minimum wage is determined in accordance with the province or regency/municipality. 2. The minimum wage is determined in accordance with the sectors in that province or regency/municipality. Meanwhile, based on the regulation from the Ministry of Manpower and Transmigration Number 7 of 2013 on Article 1, the minimum wage consists of minimum wage in the province, regency/municipality, sectoral minimum wage in the province, regency/municipality. The
  • 4. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 minimum wage in the province is in effect for all regencies/municipalities in a province whereas the sectoral minimum wage in the province is in effect in all regency/municipality sectors. What is regarded as minimum wage in a regency/municipality is only enacted in that area or that sector. Upon the decision of minimum wage standard, the governor shall refer to the Law Number 13 of 2003 about Manpower; the President's decree Number 107 of 2004 regarding the Wage Commission; Regulation from the Ministry of Manpower and Transmigration Number 13 of 2012 concerning the components and implementation of decent living standard; and the Regulation from the Ministry of Manpower and Transmigration Number 7 of 2013 about the minimum wage. In Article 89 Clause (3) of Manpower Regulation is stated that the minimum wage shall be determined the governor by taking into account the recommendations made by Provincial Remuneration Committee as stated in Article 21 Point (a) Clause 1 and 2 of President's decree regarding the role of Remuneration Committee: “The Provincial Remuneration Committee is responsible for providing suggestions and considerations for the governor in order to determine the minimum wage in a province and a municipality. The similar view is stated in Clause 2, point 5 (a) in President's instruction is stated that the governor particularly determines the minimum wage in accordance to the recommendation from the Remuneration Committee in each province. In Article 89 Clause (2) and (4) of Manpower Regulation, the minimum wage shall be directed towards the achievement of prosperous life and its components in which the stages are regulated by Ministry of Manpower and Transmigration namely law Number 13 of 2012 about the components and implementation of decent living standard, and in line with Article 3 Clause (4) concerning the Ministerial Regulation Number 7 of 2013 about the minimum wage that the decent living standard is based on the governor's decision. It shall consider the following points: decent living standard, consumer's price index; ability of company's continuation; wage in a particular area; condition of job market; economical level and gross domestic product. There are some important points in the latest calculation of wage and decent living components according to the Regulation of Manpower and Transmigration Ministry Number 13 of 2012, i.e.: 1. There is an improvement of decent living standard from 46 to 60 components including: an addition of 14 new components, an adjustment/addition of quality and quantity of decent living standard and a change of need type. 2. This regulation has been in effect since 12 July 2012. Consequently, the decent living standard is drafted and formulated through surveys, led by the local institutions to support its performance and Regency/Municipality Remuneration Committee. 3. The regulation from Ministry of Manpower and Transmigration Number 13/2012 is enacted as one of the considerations to determine the wage minimum standard in the following year which means the stakeholders shall take it into account as the basis of minimum wage decision. 4. The regulation from Ministry of Manpower and Transmigration Number 17/2005 is not in effect so that each element of workforce was not based on this rule as its basis. The other important point regulated is the amount of decent living standard determined by the Head of Remuneration Committee and reported to the governor regularly (monthly); whenever the decent living standard is calculated per month, the governor shall receive the report. The survey team according to the Ministerial Regulation Number 13 of 2012 at least consists of 5 people: tripartite element (worker-employer-government), expert and central statistics body.
  • 5. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 2. The Optimization of Bipartite and Tripartite Cooperation Institution The existence of Bipartite Institution is regulated in Law Number 13 of 2003 regarding the workforce and decision from the Ministry of Manpower and Transmigration Number Kep.255/Men/2003 about the Mechanism to Form and Structure of Membership of Bipartite Cooperation Institution. In Article 1 point 18, Law Number 13 of 2003 is explained the definition of bipartite cooperation institution as the communication and consultation forum regarding industrial relationship in a particular company whose membership consists of the employer and registered workers/labors under the responsible institution. Furthered in Article 106 Clause (1) of Law Number 13 of 2003, every company employing more than fifty workers/labors is required to establish a bipartite cooperation institution. Its members consist of employer and workers/labors element appointed democratically by the workers/labors to represent them in the related company (Article 106, Clause (3) of Law Number 13 of 2003). Meanwhile its organization structure shall include at least a chief, a secretary and members. The chief position can be occupied in turn between the representative of employer and the representative of workers/labors (Article 10, Clause (1) and (2) Kep.255/Men/2003). The membership of bipartite cooperation institution is determined by the employer and workers/labors from the composition of 1:1 in accordance with the provision of at least six people and maximum twenty members (Article 9 of Kep255/Men/2003). Its duration is 2 years and shall be registered in the workforce institution in the regency/municipality. The duties of bipartite cooperation institution are: 1. Periodically conduct meetings (or whenever necessary). 2. Communicate the polity of employer and aspirations of workers/labors related to the welfare of workers/labors and the continuation of that business. 3. Early detect and accommodate the issues of industrial relationship in that company. 4. Channel recommendations and opinions to the workers/labors and/or the worker/labor union. Five of them shall be optimized by bipartite cooperation institution in order to create conducive workplace including during the minimum wage standard decision related to its annual renewal by creating structure/scale of waging. Through this institution, workers and employer will be able to express their thoughts and opinions as well as transparent information including the financial report of that company so that trust and bond for the continuation of that company will be enhanced. Therefore, conflicts will be avoided as the communication and kinship are developed well including in a small enterprise that is currently unable to offer high payment due to their limited ability. In this regard, tripartite cooperation institution role is as the communication, consultation and discussion forum regarding the workforce issues whose memberships consist of employer organization, worker/labor union and government. Established in the state, province and regency/municipality level, this institution aims at providing suggestions and opinions for the government and related stakeholders in formulating a policy and a solution for workforce issues. Here is the data of Tripartite Cooperation Institution in Indonesia in each district/city:
  • 6. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 Table 2: Tripartite Cooperation Institution in Indonesia by Province and District/City In 2011 - 2013 NO PROVINCE Tripartite Cooperation Institution 2011 2012 2013 Province District/City Province District/City Province District/City 1 Aceh 1 7 1 7 1 8 2 Sumatera Utara 1 10 1 14 1 14 3 Sumatera Barat 1 7 1 8 1 11 4 Riau 1 11 1 11 1 13 5 Jambi 1 6 1 6 1 7 6 Sumatera Selatan 1 8 1 8 1 8 7 Bengkulu 1 5 1 5 1 6 8 Lampung 1 6 1 7 1 7 9 Bangka Belitung 1 3 1 6 1 7 10 Kepulauan Riau 1 6 1 6 1 7 11 DKI Jakarta 1 1 1 1 1 9 12 Jawa Barat 1 27 1 27 1 27 13 Jawa Tengah 1 33 1 35 1 35 14 DI. Yogyakarta 1 5 1 5 1 6 15 Jawa Timur 1 26 1 27 1 27 16 Banten 1 5 1 7 1 8 17 Bali 1 9 1 9 1 9 18 Nusa Tenggara Barat 1 7 1 7 1 7 19 Nusa Tenggara Timur 1 4 1 4 1 4 20 Kalimantan Barat 1 14 1 14 1 14 21 Kalimantan Tengah 1 2 1 2 1 9 22 Kalimantan Selatan 1 6 1 6 1 8 23 Kalimantan Timur 1 8 1 8 1 12 24 Sulawesi Utara 1 3 1 3 1 8 25 Sulawesi Tengah 1 7 1 7 1 7 26 Sulawesi Selatan 1 6 1 7 1 7 27 Sulawesi Tenggara 1 5 1 4 1 7 28 Gorontalo 1 2 1 2 1 2 29 Sulawesi Barat 1 1 1 1 1 1 30 Maluku 1 2 1 2 1 2 31 Maluku Utara 1 1 1 - 1 - 32 Papua Barat 1 1 1 1 1 1 33 Papua 1 1 1 9 1 9 Jumlah 33 245 33 266 33 307 Courtesy : Ditjen. PH Iand Jamsostek Based on the data above, it shows that not all district/city has Tripartite Cooperation Institution, so that it is necessary to hold the Tripartite Cooperation Institution to overcome many problems about employment and the minimum wages. The responsibilities of tripartite cooperation include: 1. Establish good communication and cooperation among the government, workers and employer.
  • 7. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 2. Accommodate, formulate and solve problems related to workforce issues. 3. Maintain reciprocal communication, information and consultation in working relationship among three tripartite elements. 4. In its relation to other tripartite bodies, provide reciprocal information and consultation with local and sectoral tripartite. The optimization of tripartite cooperation institution for four roles above is necessary during the process of minimum wage standard decision. This institution can provide feedback and recommendation including the prevention for multifaceted issues in each area. The socialization of wage provision for the employer and workers shall be carried out. It includes the dissemination of information that the minimum wage consists of primary wage and permanent subsidy in which temporary subsidies such as meal and transport fee based are not included and the minimum wage is in effect for workers with less than one year experience. 3. The Supervision and Law Enforcement for the Implementation of Minimum Wage Standard Labor inspection was conducted by labor inspectorsin each district / city region of each work place, the following is the supervisory employee data region of Indonesia: Table 3: Supervisors and investigators of Labour In Indonesia by Province in2013 NO. DISTRICT / CITY GENERAL SPECIALTY TOTAL 1 2 3 4 5 6 7 8 9 10 11 1 Aceh 28 - - - - - - - - - - - 28 2 SumateraUtara 84 1 - - - - - 1 - - - - 86 3 SumateraBarat 29 2 1 - 1 1 1 1 - - 1 - 37 4 Riau 30 - 1 - - - - - - - - - 31 5 Jambi 25 - - - - 1 - - - - - - 26 6 SumateraSelatan 39 2 1 - 1 - - - - - - - 43 7 Bengkulu 17 - - - - - - - - - - - 17 8 Lampung 15 1 2 - - - - - - - - - 18 9 Kep.BangkaBelitung 10 1 - - - - - - - - - - 11 10 KepulauanRiau 34 - - - - - - - - - - - 34 11 DKIJakarta 100 - - - - - - - - - - - 100 12 JawaBarat 152 7 10 1 1 2 2 3 - - - - 178 13 JawaTengah 171 10 2 - 4 15 1 19 1 1 - - 224 14 DaerahIstimewaYogyakarta 21 - 1 - - 1 - - - - - - 23 15 JawaTimur 138 5 7 - 3 1 1 4 1 - - - 160 16 Banten 58 2 1 - 1 1 - - 3 - - - 66 17 Bali 17 - - - - - - - - - - - 17 18 NusaTenggaraBarat 16 - - - - - - - - - - - 16 19 NusaTenggaraTimur 18 - - - - - - - - - - - 18 20 KalimantanBarat 15 - - - - - - - - - - - 15 21 KalimantanTengah 31 - - - - - - - 1 - - 1 33 22 KalimantanSelatan 23 2 1 - - 2 1 - - - - - 29 23 KalimantanTimur 33 2 2 - - 1 - 2 2 - - - 42 24 SulawesiUtara 30 - 3 - - - - - - - - - 33 25 SulawesiTengah 16 - - - - 1 - - - - - - 17 26 SulawesiSelatan 48 1 3 - 1 1 - - - - - - 54 27 SulawesiTenggara 18 - 4 - - 1 - - - - - - 23 28 Gorontalo 8 1 - - 1 1 - - - - - - 11 29 SulawesiBarat 7 - - - - - - - - - - - 7 30 Maluku 12 - - - - - - - - - - - 12 31 MalukuUtara 7 - - - - - - - - - - - 7 32 PapuaBarat 11 - - - - - - - - - - - 11 33 Papua 18 - - - - - - - - - - - 18
  • 8. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 DitjenPPK 155 - - - - - - - - - - - 155 JUMLAH 1.279 37 39 - 13 29 6 30 8 1 1 1 1.445 Courtesy:DitjenPPK, analizedPusdatinaker Notes:*)1. Employment, 2. Working Time and Rest Time, 3. Wages,4. Social security of employment, 5.Placement and Training, 6.Aircraft Steam and Pressure Vessel, 7. Aircraft Lift Transports, 8. Aircraft Power Production, 9.Electricity and lifts, 10.Prevention of Fire, 11.Occupational Health, 12. BuildingConstruction , 13. Working Environmental, 14. Chemical Based on the data in the table above, it shows that the number of field inspectors wage is still a little bit, so that it cannot carry out their duties in overseeing the entire companies in Indonesia. The strict supervision and law enforcement for the implementation of minimum wage standard shall be conducted by the designated institution; in this case, the direct involvement of workforce department in each area is essential. The legislative provision related to the minimum wage standard shall be clear including: 1. Article 90, Clause (1) of Law Number 13 of 2003 regarding the workforce states that the employer is prohibited to pay the wage lower than the standard. 2. Article 185, Clause (2) of Workforce Law mentions the agreement (between workers/labors and employer) that paying lower wage from the standard (without the postponement approval from the responsible body) is the form of criminal violation with the threat of imprisonment for 1 (one) to 4 (four) years and/or a fine between Rp. 100.000.000,- (one hundred million rupiah) to Rp. 400.000.000 (four hundred millions rupiah). 3. Article 52, Clause (1) Section (d) and Article 52, Clause (3) of Workforce Law and Article 1320, Clause (4), Article 1337 of Civil Conduct states that the agreement in a contract, including in workplace shall not contradict to the legislative provisions. In other words, the agreement among stakeholders shall be rightful and not illegal. As a result, the contract offering wages lower than the standard is prohibited. According to the above provisions, an agreement (between workers/labors and employer) is of course not the only basis of wage payment. What is possible to be carried out here is performing efficient tasks in all aspects in order to enhance productivity. Principally, the amount of minimum wage determined by the governor for a certain period is not the basis of payment for all workers/labors in the related company. It is just the wage standard for particular workers/labors namely: 1. On the lowest position or work (Article 92 Clause (1) regarding the workforce law, Article 1 Section 2 of Ministry of Manpower and Transmigration Decision Kep49/Men/IV/2003 regarding the structure and scale of leveled wage). 2. Work period from 0 to 1 (one) year (Article 14 Clause (2) of Ministerial regulation Per- 01/Men/1999); and/or: 3. Marital Status as Single (Article 1 Clause 1 of Ministerial Regulation Number 13 of 2012). As a result, for workers/labors whose job position is not the lowest, his employment period is more than 1 (one) year and/or has (official) burdens, their wage is, of course, not equal to the minimum standard. In fact, it shall be higher in accordance to the waging structure and scale (Article 1 Clause 2 and 3 Ministerial Regulation Kep-49/Men/IV/2003). The supervision for minimum wage implementation is conducted by the staffs in the department of Manpower and Transmigration in regency/municipality as well as province level. Their role is
  • 9. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 to supervise and enforce the workforce provisions including the implementation of minimum wage standard. In this regard, they shall investigate whether or not the waging structure and scale have existed; if the system has not been created yet, the staffs in the referred department shall assist its creation and implementation. Consequently, law enforcement will be performed if the company does not demonstrate good willingness to implement the provision as regulated in provisions above. C. CONCLUSION The minimum wage standard decision is made to protect workers/labors in the lowest position with working period less than 1 (one) year thus longer period shall be grated higher payment according to the waging structure/scale. The conflicts due to wage standard decision shall be solved and minimized. Definitely, the role of government, employer organization and worker/labor union is fundamental. The calculation and survey of decent living as the basis of minimum wage standard are carried out in accordance to the prevailing rule and methodology. The optimization of both bipartite and tripartite cooperation institutions is necessary in order to enhance openness between employer and workers during socialization and dialogue process. More importantly, a clear and understandable waging structure/scale in each company shall be created here. All in all, the strict supervision and law enforcement shall be performed if the decision of minimum wage standard is violated through referring to the prevailing regulations. References: Asikin Zainal, dkk; Dasar-Dasar Hukum Perburuhan; Jakarta; PT Raja Grafindo Persada; 1994 Budiono R Abdul; Hukum Perburuhan; Jakarta Barat; PT Indeks; 2011 Husni Lalu; Pengantar Hukum Ketenagakerjaan Indonesia; Jakarta; PT Raja Grafindo Persada; 2003 Kartasaputra G; Hukum Perburuhan di Indonesia berdasarkan Pancasila; Jakarta; Sinar Grafika; 1992 Marbun Rocky; Jangan Mau di PHK Begitu Saja; Jakarta Selatan; Visi Media; 2010 Rajagukguk P H; Peran Serta Pekerja Dalam Pengelolaan Perusahaan; Jakarta; Yayasan Obor Indonesia; 2002 Soedarjadi; Hukum Ketenagakerjaan di Indonesia; Jakarta; Pustaka Yustisia;2008 Soepomo Iman; Pengantar Hukum Perburuhan; Djambatan; 1976 Wijayanti Asri; Sinkronisasi Hukum Perburuhan Terhadap Konvensi ILO; Bandung; Karya Putra Darwati Bandung; 2012 Tim Redaksi Pustaka Yustisia; Kompilasi Hukum Ketenagakerjaan Dan Jamsostek; Yogyakarta; Pustaka Yustisia; 2010 Halim Ridwan A; Hukum Perburuhan Dalam Tanya Jawab; Jakarta; Perling Jateng; 1983 Tim Kompendium; Kopendium Hukum Bidang Ketenagakerjaan; Jakarta Timur; Badan Pembinaan Hukum Nasional Kementrian Hukum dan Hak Asasi Manusia RI; 2012 Legislative Provisions 1945 Constitution of Republic of Indonesia Law Number 13 of 2003 regarding workforce Law Number 2 of 2004 concerning the resolution for labor disputes Law Number 21 of 2000 about the worker/labor union Government Regulation Number 8 of 1981 regarding the wage protection President's decree Number 107 of 2004 about the Remuneration Committee President's Instruction Number 9 of 2013 about the policy to determine the minimum wage standard for the company continuation and labor welfare improvement
  • 10. Proceeding - Kuala Lumpur International Business, Economics and Law Conference 4 (KLIBEL4) Vol. 3. 31 May – 1 June 2014. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-11350-3-7 President's regulation Number 21 of 2010 about the supervision for workforce Regulation from the Ministry of Manpower and Transmigration Number 7 of 2013 regarding the minimum wage Regulation from the Ministry of Manpower and Transmigration Number 13 of 2012 regarding the components and implementation of decent living standard Regulation from the Ministry of Manpower and Transmigration Number 1 of 2006 regarding the implementation of Article 3 of Ministerial Decision Number 231 of 2003 about the mechanism for minimum wage postponement.