GOVERNOR OF BANTEN. DECISION OF THE GOVERNOR OF BANTEN NUMBER 561 / Kep.643-Huk / 2016

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GOVERNOR OF BANTEN DECISION OF THE GOVERNOR OF BANTEN NUMBER 561 / Kep.643-Huk / 2016 CONCERNING SECTOR MINIMUM WAGE DETERMINATION FOR TANGERANG CITY AND CILEGON CITY 2017 GOVERNOR OF BANTEN, Considering: that in order to implement the provisions of Ar ticle 89 paragraph 3 of Law No. 13 of 2003, it deemed is necessary to stipulate a Governor De cision on Determination for Tangerang City and Cilegon City 2017. In view of: 1. Law No. 1 of 1987 on the Chamber of Commerce and Industry (State Gazette of the Republic of Indonesia of 1987 Number 8, Supplement to the State Gazette of the Republic of Indonesia Number 3346); 2. Law Number 21 of 2000 concerning trade unions (State Gazette of the Republic of Indonesia In 2000 No. 131, Supplement to the State Gazette of the Republic of Indonesia 3989); 3. Law Number 23 of 2000 on the Establishment of Banten Province (State Gazette of the Republic of Indonesia of 2000 Number 128, Supplement to State Gazette of the Republic of Indonesia Number 4010); 4. Law Number 13 of 2003 on Manpower (State Gazette of the Republic of Indonesia Year 2003 Number 39, Supplement to State Gazette of the Republic of Indonesia Nomor 4279);

Taking into account:1. 5. Law No. 2 of 2004 on the Industrial Relations Dispute Settlement (Official Gazette of the Republic of Indonesia of 2004 Number 6, State Gazette of the Republic of Indonesia Number 4356); 6. Law Number 23 of 2014 regarding Regional Government (State Gazette of the Republic of Indonesia of 2014 No. 244, Supplement to the State Gazette of the Republic of Indonesia Number 5587) as amended by Law No. 9 of 2015 concerning Second Amendment to Law Number 23 of 2014 on Regional government (State Gazette of the Republic of Indonesia Year 2015 Number 58, Supplement to State Gazette of the Republic of Indonesia Number 5679); 7. Government Regulation No. 78 of 2015 on (State Gazette of the Republic of Indonesia of 2015 Number 237, Supplement to the State Gazette of the Republic of Indonesia Number 5747); 8. Presidential Decree No. 107 of 2004 on Council; 9. Presidential Instruction No. 9 of 2013 concerning Minimum Fixing policy in the framework of Business Sustainability and Workers Improvement; 10. Regulation of the Minister of Manpower and Transmigration No. 13 of 2012 on Items (in the basket) and the Implementation Achievement Phasing of Living Needs; 11. Minister of Manpower Regulation No. 7 of 2013 concerning Minimum Decree of the Minister of Home Affairs Number 121.36-10013 of 2016 on Appointment of Acting Governor of Banten; 2. Decision of Banten Governor No. 561 / Kep. 539-Huk / 2016 dated October 31, 2016 on Minimum Determination of Banten Province for 2017; 3. Decision of Banten Governor No. 561/Kep.553- Huk/ 2016 concerning Minimum Determination for Serang City 2017; 4. Letter of Tangerang Mayor No. 561/1086 / DTKT / 2016 dated 4 November 2016 regarding

Recommendation on Minimum for Tangerang City 2017; 5. Letter of Cilegon Mayor No. 560/2210 /Disnaker dated 14 November 2016 Regarding Recommendation on Minimum Determination For Cilegon 2017; 5. Memo of the Head of Provincial Manpower and Transmigration Office of Banten No. 561/2798- DTKT / XI / 2016 dated 22 November 2016 regarding the Request for a Banten Governor Decision On s for City of Tangerang and Cilegon 2017. DECIDE to Enact: ONE : Determination of sector minimum wages for Tangerang City and Cilegon City 2017, with categories and amounts as listed in Appendix I and Appendix II of this Decision. TWO : Said Minimum s for Tangerang City mentioned in the dictum ONE are set out in five (5) Business Categories while s for Cilegon City are set out in three (3) business categories. THREE : Said sector minimum wages for Tangerang City and Cilegon City mentioned in the dictum ONE apply only to workers with less than 1 (one) year of service. FOUR : Amounts of the wages for workers with more than 1 (one) year of service is based on a written agreement between workers and/or trade union and the employer. FOUR : This Governor Decision shall come into force as from January 1, 2017. Enacted in Serang on December 21, 2016

Acting GOVERNOR OF BANTEN, Signature NATA IRAWAN Copied to: 1. The Minister of Home Affairs of the Republic of Indonesia; 2. The Minister of Manpower of the Republic of Indonesia; 3. The Minister of Industry of the Republic of Indonesia; 4. Minister of Trade of the Republic of Indonesia; 5. Tangerang Mayor; 6. Cilegon Mayor; 7. The Chairman of the Indonesian Employers Association of Banten province; 8. Chairs of the Trade Unions of Banten province. Appendix I of Decision of Banten Governor Number. 561 / Kep.643-Huk / 2016 Date: December 21, 2016 CATEGORIES AND AMOUNTS OF SECTOR MINIMUM WAGES for TANGERANG CITY 2017 No Business SECTOR I 1 Special drink 2 Paper, paper products and the like Liquor Manufacture of pulp, paper and paperboard 15% More than MW 2017

3 Industry of chemicals and chemical products 4 Manufacture of rubber and rubber products Basic chemical pharmaceutical (non-sme) Paints, Varnishes and Shellac Industry of soaps and household cleaning agents, cosmetics, and the like (Non SME) V-Fan Rubber Belt Industry Manufacture of other rubber products for the automotive and machinery industries

5 Basic metal Basic iron metal and steel Non-ferrous basic metal Casting iron and steel Casting of non iron and steel industries 6 Manufacture of metal products except machinery and Industry of metal products of mass production ready to use for construction

8 Industry of machinery and for office accounting data processing Machinery / for processing / metalworking, wood, and other materials Industry Industry of machinaries for mining, quarrying and construction Industry for other special purposed machines Industry of housewares not classified elsewhere (such as air conditioners, refrigerators, washing machines, etc.) Industry of machinery and office, accounting and data processing (such as computers, printers, etc.) Non SME

9 Industry of radio, TV and communication and accessories 10 Motor vehicle 11 Industry of transport other than 4 or more wheeled motor vehicle 12 Electricity, gas, steam and hot water 13 Big trade except cars and motorcycles Transmission and communications Radio, TV, Sound recording and picture and the like 4 or more wheeled motor vehicle Industry- body builder for 4 or more wheeled motor vehicle 4 or more wheeled motor vehicle components 2 or 3 wheeled motor vehicle components with plastic base material Electrification Big trade and building fixtures, tile, brick, tile, and the like clay, lime, cement, or glass

14 Plastics non household appliance Industry of pipes and hoses of plastics with the production of PVC, PVC plastic hose and PP plastic hose 15 Banking Non-Foreign Exchange Bank Foreign Exchange Bank Islamic Bank 16 Cable and its 17 Non metallic mineral products 18 Other electrical machinery and 19 Industry of artificial fibers and filaments synthetic, plastic pellets / chips Fiber optic cable and telephone Industry of electrical cables and other electronics Glass Industry of cement products, lime, gypsum, and other asbestos Manufacture of electrical accumulators and batteries Plastic pellets / chips

20 Manufacture of other plastic products 21 Manufacture of metal products except machinery and Industry of plastic sheet products Industry of metal products for the building ready for use production by order SECTOR 2 1 Industry of publishing, printing and reproduction of recorded media 2 Industry of chemicals and chemical products 3 Non metallic mineral products Printing Industry (Non SME) Herbal Industry (Large Scale) Pest Control Manufacture of building materials from clay / ceramic / porcelain Industry of clay / ceramic and porcelain products non building materials 10% more than MW 2017

4 Manufacture of metal products except machinery and Industry of tanks, containers of liquid substance and metal containers Industry of metal forging, stamping and rolling Industry for a wide range of specialized work involving metal and metal products Industry metal products ready to use, mass production ready to use for building Industry of metal products that are not classified elsewhere Industry of cutting tools and other from metal

5 Industry of machinery and 6 Other electrical machinery and 7 Industry of radio TV and communications and Industry of pump and compressor Industry of mechanical transmission (bearing) Industry of other general machinery Industry of other general purposed machinery Industry of electric motors, generators and transformers Industry of control and power distribution Industry of electrical appliances that are not classified elsewhere Industry of electronic valves and tubes and other electronic components

8 Industry of medical, navigation, measuring instruments, optical, watches and clocks 9 Other processing Industry of optical instruments and photographic Industry of musical instruments (non- SME) Industry of large scale and export for games and children's toys 10 Textile Industry of yarn spinning, Fabric refinement, Weaving, Final processing of textiles 11 Service Distributor 12 Timber and furniture 13 Garment Manufacture of tables, chairs, cabinets furniture for a large scale export (non-sme) Garment (Non home )

14 Industry of artificial fibers and filaments synthetic Industry of PET Resin / and the like Industry of fiber/thread / strip of artificial filament Industry of artificial staple fibers 15 Leather, leather products SECTOR 3 Leather, leather products, including artificial leather 1 Commerce Supermarket 5% more than MW 2017 2 Industry of other Electrical Machinery and its 3 Industry of rubber, rubber products Small scale electrical cable Industry of light bulbs and lighting lamps 4 Banking Insurance Retreading and Bike tire 5 Service Warehousing 6 Paper, paper products and the like carton Bandages and the like

7 Other processing 8 Plastic products 9 Hospital and pharmacy 1 Manufacture of rubber and rubber product Industry of stationery and drawing, including their supplies Plastic products Hospital type B Services Pharmacies Car and motorcycle tire

11 Food and beverage SECTOR 4 Leather, leather products and footwear Industry of processing and preservation of meat (non-sme) Industry of bakery and the like (Non SME) Industry of food made from cocoa and confectionery (non-sme) Industry of macaroni, noodles, spaghetti, vermicelli, glass noodles, and the like (Non SMEs) Industry of packaged beverage (non-sme) Industry of footwear for everyday use, sports shoes and technical shoes 3.1% more than MW 2017 SECTOR 5

For companies that have an agreement with trade unions on sector minimum wage, the wage provided in the said agreement applies (agreement attached). The companies are: 1. PT. Sandrafine Garment 2. PT Indah Jaya Textile Industry 3. PT Sanggar Elegance Indah 4. PT Tunas Alfin Tbk 5. PT Dwiutama Intiterang 6. PT Colorlak Indonesia 7. PT Megah Sembaga Industries 8. PT Furnilac Primaguna 9. PT Lucky Indah Keramik 10. PT Presindo Central 11. PT Broco Mutiara Electrical Industry 12. PT Stretchline 13. PT Indo Taichen Textile Industry 14. PT Gunacipta Multirasa 15. PT Inter World Steel Mills Indonesia

ACTING GOVERNOR OF BANTEN Signature NATA IRAWAN Appendix II of The Decision of Banten Governor Number. 561 / Kep.643-Huk / 2016 Date: December 21, 2016 and Amounts of s for Cilegon City 2017 No BUSINESS SECTOR MINIMUM WAGE CATEGORY I 20 Manufacture of chemicals and chemical products 24 Basic metal 7% more than MW 2017 28 Industry of machinery and 35 Supply of electricity steam / hot water and cold air 43 Special construction 49 Heavy transport and transport via pipeline channels MINIMUM WAGE CATEGORY II 10 Foodstuff 5% more than Minimum wage

No BUSINESS SECTOR 16 Wood 52 Warehousing and freight services 64 Financial Services (Banking) 36 Industrial water treatment 37 Industrial waste management MINIMUM WAGE CATEGORY III 18 Industry of printing and reproduction of recorded media 61 Telecommunication 3% more than MW 2017 65 Insurance and pension funds 68 Real estate 78 Employment services 79 Travel agencies organizing tours and booking services 86 Human health services 41 Construction of buildings ACTING GOVERNOR OF BANTEN Signature NATA IRAWAN