2. What is the definition of
Compensation
Management? UMR?
Minimum Wage Regional in 2012 Total
DKI Jakarta Rp1.529.150,00
Bogor Rp 1.174.200,00
Bandung Rp 1.223.800,00
Papua Barat Rp 1.410.000,00 – Rp
1.450.000,00
3. Regulation
PERATURAN MENTERI TENAGA KERJA
NOMOR : PER-01/MEN/1999
UPAH MINIMUM
UU no 23 tahun 1999, in chapter 10
“Perlindungan , Pegupahan, dan
Kesejahteraan
4. PT Freeport
Problems
• Mining technicians
want an increasing
salary and paid in dollar
Causing
• Strike Action
Moreover, it has given
salary based on UMR
5. Why could strike action be happened?
• The average salary : $40.000 or about
Rp360.000.000,00 per year, Rp 30.000.000,00
per month.
• They get : Rp210.000.000,00 –
Rp230.000.000,00 or about Rp19.000.000,00
per month.
• They live in West Papua daily needs are
more expensive than in another islands
6. Suggestion for PT Freeport?
• increase the base salary,
monthly bonus, pension
fund, another income
protection in health and
education for the
children, and also for the
allowance (housing)
• make an agreement with
the employees
7. Conclusion
• PT Freeport has followed the rule and it is a
good example.
• Actually not only unfulfilled UMR that can
cause demostration, but also unfulfilled salary
standard can.
• To avoid a demonstration happened that
causing a big loss, a company can fulfill the
employees proposed.