State Administrative Court: the 2017 Labour-intensive Minimum Wage is unlawful

In its ruling read on 6 February 2018, the panel of judges of the State Administrative Court of Bandung decides that the 2017 Labour Intensive Minimum Wage imposed in three municipals in Jawa Barat namely District of Bogor, District of Purwakarta and City of Bekasi is unlawful. The minimum wage in question is set   for the garment/apparel industry.

The object of the lawsuit is Governor of Jawa Barat Decree No. 561/Kep.644-Yanbangsos/2017 concerning the Minimum Wage of Certain Labour-intensive Industry Type of Garment/Apparel Industry in the District of Purwakarta of 2017 dated 24 July 2017; Decree No. 561/Kep.679-Yanbangsos/2017 concerning the Minimum Wage of Certain Labour-intensive Industry Type of Garment/Apparel Industry in the District of Bogor of 2017 dated 28 July 2017; and Decree No. 561 / Kep.Kep.680-Yanbangos / 2017 concerning the Minimum Wage of Certain Labour-intensive Industry Type of Garment/Apparel Industry in the City of Bekasi of 2017 dated 28 July 2017. These Decrees stipulated a certain sector-based minimum wage lower that the prevailing municipal minimum wage. According to the Minister of Manpower and Transmigration Regulation No. 7 Tahun 2013, sector-based minimum wage figure should be greater than municipal/provincial minimum wage.

The plaintiff in this case is several trade unions including Confederation of Indonesian Prosperous Trade Union and Confederation of All-Indonesia Trade Unions. While the defendant is the Governor of Jawa Barat province.

In the nutshell, the State Administrative Court assert the Governor decrees are null and void. Further, it requires the defendant to revoke the decision and impose the district/city minimum wage to the plaintiff based on the Governor of Jawa Barat Decree Number 561/Kep.1191-Bangsos/2016 about the Municipality Minimum Wage in jawa Barat Province of Year 2017 dated 21 November 2016 effective as of 1 January 2017 with details as follows :
1. The District of Purwakarta: IDR. 3,169,549.17  per month;
2. The District of Bogor: IDR 3,204,551.00 per month;
3. The City of Bekasi: IDR. 3,601,650.00 per month.

The Court also requires the defendant to pay forced money (dwangsom) of IDR 5,000,000 for each day of delay, if the defendant neglects and /or does not enforce the decision of Bandung State Administrative Court which has a permanent legal force.

Referring to the Indonesian State Administrative Court Law, the Governor can appeal the District Court decision to the State Administrative High Court. The appeal period stipulates by section 123 paragraph (1) of the Administrative Court Law is 14 days after the Court decision is legally notified to the parties. if the submission deadline ends and there is no appeal, then the parties are deemed to have accepted the decision of the judges of the Administrative Court.

Amar Putusan PTUN No. 108_G_2017_PTUN.BDG

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