Farm workers’ purchasing power falls in November

Despite an 0.17 percent increase in the national farm workers’ nominal wage to Rp 46,881 per day as of November (month on month/ MoM), the Central Statistics Agency (BPS) has recorded a 0.25 percent decrease in the real wage of national farm workers in rural areas to Rp 37,822.

Although farm workers in Indonesia have received a higher wage, on average, their purchasing power has in fact weakened when compared to the previous month, according to Suryamin, head of BPS.

“The decrease of the real wage in rural areas is caused by higher rural inflation, surpassing inflation in urban areas. Rural inflation in November was recorded at 0.43 percent while urban inflation is at 0.21 percent”, he said to

The scarcity and uneven distribution of goods has led to cost increases throughout rural areas, illustrating that price volatility in rural areas can be higher than that of urban areas, said Suryamin.

He recommended that the government rectify goods distribution to rural areas across the country, to keep a balanced supply and demand of goods and prevent the farm workers’ purchasing power from plummeting.

Informal workers

Meanwhile, according to BPS data, urban informal workers such as construction workers and hairdressers had enjoyed both nominal and real wage increase in November (MoM).

Construction workers’ nominal and real wage increased by 0.25 percent to Rp 80,946 and 0.04 percent to Rp 66,447 respectively. While the nominal and real wage for hairdressers had risen by 0.61 percent to Rp 23,998 and 0.4 percent to Rp 19,699, respectively.

Such increase did not apply to domestic workers whose real wage decreased by 0.09 percent to Rp 291,841 despite the 0.12 percent increase in their nominal wage to Rp 355,521.

Source:, 15/12/15
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