The recent fuel price hike has reduced the purchasing power of Indonesian workers by up to 30 percent, Indonesian Labour Union Confederation (KSPI) president Said Iqbal said.

“We will fight for a 50 percent increase in minimum wages next year,” Indonesia’s Antara quoted him as saying in Jakarta yesterday.

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, Said 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 urged 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 (Hari Raya), members of all regional wage councils representing workers will gather in Jakarta and Makassar to fight for a 50 percent increase in minimum wages,” he said.

The government raised the prices of subsidised gasoline and diesel oil to Rp6,500 (RM2) and Rp5,500 (RM1.69) respectively from Rp4,500 (RM1.38) a litre last month.

- Bernama