Workers' Purchasing Power Falls 30 Pct

Jakarta, July 17 (Antara) - The recent fuel price hike has reduced the purchasing power of Indonesian workers by up to 30 percent, President of the Indonesian Labor Union Confederation (KSPI) Said Iqbal said. "For its part, we will struggle for a 50 percent increase in minimum wages next year," he said here on Tuesday. The confederation will try to get the demand accepted either through negotiations at regional wage councils or mass rallies in September, October and November across Indonesia, he said. Even if the minimum wages were to be raised by 50 percent the wages would still be below those of the Philippines, Malaysia, Thailand, India, and Brazil and slightly above those of Vietnam and Cambodia, he said. Therefore, the confederation called on both the government and employers to discuss how to increase the productivity of the local workers and reduce overhead costs rather than turning down the demand for wage hike, he said. "After the Muslim holiday of Lebaran, members of all regional wage councils representing workers will gather in Jakarta and Makassar to struggle for a 50 percent increase in minimum wages," he said. The government raised the prices of subsidized gasoline and diesel oil to Rp6,500 and Rp5,500 respectively from Rp4,500 a liter last month.