Following demonstrations over the increase in petrol prices, Indonesia will reconsider its minimum wage laws

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Last Updated on September 13, 2022 by Bitfinsider

After trade unions conducted statewide demonstrations over a recent increase in gasoline prices that they claim has come even as salaries stagnate, the president’s office announced on Tuesday (Sept. 13) that Indonesia will examine minimum wage and other labor laws.

To control a ballooning energy subsidy budget, President Joko Widodo increased the price of subsidised fuel in Southeast Asia’s largest economy by 30% earlier this month. This move sparked demonstrations from workers and students around the nation.

The increase in fuel prices is expected to hasten inflation, which has already risen to its highest level since 2015 as a result of rising food prices.

According to a statement from the presidential palace, Heru Budi Hartono, the head of the president’s office, met with protesting workers at the presidential palace in central Jakarta on Monday to discuss their demands.

Heru made the claim in the statement, referring to contentious legislation approved in 2020 that unions claimed was overly pro-business and calling for adjustments to the mechanism the government uses to determine annual increases in minimum wage as well as the contentious Job Creation Bill.

The requests of the workers would be examined by the authorities on Tuesday, Heru said.


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