On 15 November 2010, DKI Jakarta Governor has issued the regulation number 196 of 2010 on the Province Minimum Wages of 2011 (“Regulation“). The purpose of this Regulation is to increase real wages of workers to fulfill the decent of livelihood in Jakarta. To achieve the purpose, there is Province Wage Board (Dewan Pengupahan Provinsi), having a duty to give an advice and an opinion to the Province Government in order to formulate wages policy in DKI Jakarta. This board must have a consideration about the manpower development and the economic in Jakarta.
This Regulation, regulates that the province minimum wages at Jakarta is Rp.1.290.000 (one million two hundred and ninety thousand Rupiah) each month. This amount is the minimum of wages which must be paid by the entrepreneur. This Regulation effectively starts on January 1st 2011.
For the provincial sectoral minimum wages such as building and public works daily, energy and mining chemical industries, insurance and banking, food and beverage industries, pharmaceuticals and healthcare, textiles, and hotel for over a three-star category, will be issued by the consent of association of companies and workers union which are associated with the field of work.
The entrepreneur who is unable to fulfill his obligation under this Regulation, may propose the postponement of the implementation to the Governor through the Head of Manpower and Transmigration Office, 10 (ten) days before the date of January 1st. The proposal of postponement is as stated on DKI Jakarta Governor Regulation number 42 of 2007 on Procedures of Postponement of the Implementation Provincial Minimum Wages.