HOSTUM: National Action Stop Outsourcing and Fight Against Low Wage, 12 July

Today, Tuesday 10^th of July 2012, Konfederasi Serikat Pekerja Indonesia (KSPI – Confederation of Indonesia Trade Unions) through its press release has been calling for a national action on 12^th July at three locations: the Coordination Ministry for Economic Affairs, State Palace, and Ministry of Manpower and Transmigration. The Confederation also calls for a similar action to be held simultaneously in 15 provinces and districts/cities across the country.  They call this national action movement HOSTUM (Hapus Outsourcing dan Tolak Upah Murah—stop outsourcing, fight against low wage). The HOSTUM will be the KSPI’s campaign agenda throughout this 2012.

This agenda is so important. KSPI said that fighting for better wage for all workers around the world has been the way for improving living standard of themselves and their family. In the other side, better wage is one of nation welfare measures in which the higher the people purchasing power the higher the economy will be. Decree of Manpower and Transmigration Ministry No. 17/2005 that has been a reference for a decent living needs (kebutuhan hidup layak—KHL) is no longer feasible, particularly its 46 components of a living needs and article on phasing-grade which results in even a single worker has to be “in debt” to meet her/his living needs. 

Revision made by National Wage Council (Depenas) only recommends 4 additional components, which are: socks, belt, ironing, and deodorant. Therefore, KSPI through HOSTUM firmly rejects the recommendation because:

1. Results of Depenas’ research is invalid and academically flaw because the research takes only 3,000 respondents out of total 30 million workers or 0.01% for its sample. Worsen, only 726 (24%) of the sample is utilized and the research is not carried out in industry-density areas such as Batam, Tangerang, Bekasi, Jakarta Timur, Jakarta Utara, Kerawang, and Sidoarjo.
2. Indonesia is a country with rank of 16^th in terms of world GDP (US$ 840 billion or equal to Rp 7,560 trillion) in 2011. Its GDP per capita is US$ 3,600s/people/year in 2011 and in 2012 and 2013 the number is targeted to be US$ 900 billion and US$ 1 trillion. However, workers of this country only earn their wage worth to US$ 120/month, a small figure compared to other ASEAN counterparts: Philippine US$ 250/mothn, Malaysia US$ 350/month, Singapore US$ 450/month, Brunei US$ 500/month.

Therefore, addressing both the unreasonable revision and the continuation of “Low Wage Policy”, KSPI takes a stand as follow:

1. Demanding Coordinating Ministry for Economy Affairs and Ministry of Manpower and Transmigration to change Ministerial Decree  No. 17/2005, particularly to change its living needs components from 46 to 86 or 122 which is based on survey conducted by AKATIGA, SPN and Gartek KSBSI.
2. Urging Ministry of Manpower and Transmigration to issue the revised decree on July 2012 as its promise before the House of Representatives and in print and electronic media. Fulfillment of the promise will prevent the blockage of toll-road .

For further information, please contact President : Said Iqbal (08158235479) or General Secretrary Muhamad Rusdi (081807700570)

Translated by Indah Budiarti