Coinciding with the International Labor Day which falls every May 1, wage increases again become a demand in labor protests. In Indonesia, workers again reject the policy of low wages.
How exactly are wages in Indonesia when compared to other countries? Here's a comparison compiled from various sources.
Thailand (Rp3.90-4.17 million)
The Thai government has just enacted a new wage policy starting April 2018 after it was last revised 5 years ago. The revision made the minimum wage standard in the Land of the Elephants in the range 9,240-9,900 baht
The highest wage standard is in the two industrial cities of Chonburi and Rayong, which are 9,900 baht or 309 US dollars. (US $ 1: 31.96 baht). For Bangkok and its surrounding areas, the standard wages are slightly lower at 9,750 baht or 305 US dollars. The lowest minimum prevailing in 77 provinces in Thailand is set at 9,240 baht or 289 US dollars. This recently applied policy makes Thailand the highest country in ASEAN in setting wage standards.
Standard wages: (289-309 US dollars)
Malaysia (Rp3,17-3,45 million)
The minimum wage standard in Malaysia has not been revised since 2013. In Western Malaysia, the minimum wage is set at 1,000 rixdollars (equivalent to US $ 256 (1 US dollar: 3.9 rixdollars) while wage standards in eastern Malaysia include Sabah, Sarawak and Labuan is set at 920 ringgit or 235 US dollars.
The discourse of revisions to wage standards has surfaced in the political year. A number of left-leaning political parties pledged to raise minimum wage standards to 1,500 ringgit if it wins the election. If properly realized, Malaysian workers will earn at least Rp5, 2 million. To be sure, the government is reviewing the new wage standard and is assured to take effect next year.
Standard wages: (235-256 US dollars)
Indonesia (Rp1,45-3,91 million)
Unlike some ASEAN countries that revise the minimum wage standard every five years, Indonesia changes it every year based on indicators of economic growth and inflation.
Labor minimum wage standards in Indonesia have extreme variations by location. DKI Jakarta becomes the highest province for minimum wage of Rp3, 65 million or about 270 US dollars a month (1 US dollar: Rp13.500). While Yogyakarta became the province with the lowest minimum wage of Rp1.45 million or only 107 US dollars.
However, the determination of the minimum wage at the district level can be different. Kota Bekasi and Kabupaten Karawang for example have a standard wage of Rp3,91 million or 289 US dollars, higher than West Java province wage standard Rp1, 5 million.
Standard wages: (107-289 US dollars)
Vietnam (Rp2-2.3 million)
Starting this year 2018, Vietnam sets a new minimum wage standard. There are two types of wage standards in the industrial hub country. First, wages for civil servants are set at 1.39 million dong or 61 US dollars (1 US dollar: 22,800 dong). This standard is valid starting July 2018. Before applying, employees will get 1.39 million dong or 57 US dollars.
For private employees, the minimum wage standard differs depending on the location specified. Region I has the highest standard of up to 3.98 million dong or 174 US dollars. The region includes a number of major cities, including Hanoi and Ho Chi Minh. While Region IV has the lowest wage standard of 2.76 million dong or 154 US dollars.
Standard wages: (154-174 US dollars).
Philippines (Rp2.44-3.17 million)
The minimum wage standards in the Philippines vary by region between 9,240 pesos or 181 US dollars to 12,000 pesos or 235 US dollars. (1 US dollar: 51 baht). Region IV-A covering industrial center cities has the highest wage standard of 12,000 pesos. Region VII becomes the lowest although the standard varies between 9,240-10,980 pesos.