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West Java allows 43 companies to postpone payments based on new wage

Jakarta Post - January 23, 2017

Jakarta West Java provincial administration has allowed 43 companies across the province to postpone payments to their workers based on the new city and regency minimum wages due to various difficulties, an official has said.

Head of West Java Manpower and Transmigration Agency Ferry Sofwan Arief said the administration had received proposals from 140 companies requesting the postponement of new minimum wage levels.

"Most of the companies that requested the postponement are engaged in textiles, garments and leather," he said, as quoted by tempo.co on Friday.

He, however, stressed that the companies that had been allowed to postpone payment of new minimum wage levels had to pay the postponed wages later, as per a verdict of the Constitutional Court, which had accepted the judicial review against Law No. 13/2003 on manpower.

Before allowing the companies to postpone new minimum wage levels, the government required the companies to agree to pay the postponed wages when their cash flow recovered, said Ferry.

"If they cannot pay in the first half of the year, they can start paying in the middle of this year up to December," he said, adding that the administration would encourage the companies to pay all postponed wages no later than December.

Other requirements for the postponement included agreements with trade unions, financial reports from the previous two years and the companies' plans for the next two years.

Although the decree on the minimum wage was signed by the governor, debates on the issue were held at city and regency levels. (bbn)

Source: http://www.thejakartapost.com/news/2017/01/23/west-java-allows-43-companies-to-postpone-payments-based-on-new-wage.html.

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