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an agreement between the employer and the employee.

2. Minimum Wage

In an effort to realize an income that can meet the decent needs of the

community, the government implements a policy in the wage system,
namely the minimum wage policy. Minimum wage is a standard of income

that must be provided by employers to workers whose levels are adjusted to
the productivity and economic growth of a country.

3. Wage Council

According to Presidential Decree of the Republic of Indonesia No. 107/2004 on
the Wage Board, the wage board is a tripartite, non-structural institution. The

wage board consists of the national wage board (Depenas), provincial wage
board (Depeprov), and district/city wage board (Depekab/Depeko).

a. Wage Council National

The national wage board (Depenas) is established by the president. This
institution is tasked with providing advice and considerations to the

government in the context of formulating wage policies and developing a
national wage system. In carrying out its duties, the National Wage Council

cooperates with the government, the private sector, and other related parties.
The membership of the Ministry of National Development consists of elements

from the government, employers' organizations, trade unions/labor unions,

universities, and experts. Meanwhile, the membership of the Ministry of
National Development consists of elements from the government, employers'

organizations, and trade unions/labor unions with a ratio of 2:1:1.

Meanwhile, the number of members from universities and experts is adjusted
to the needs.

b. Wage Council Province

The provincial wage council (Depeprov) is formed by the governor. The

Depeprov's task is to provide advice and consideration to the governor in

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