Midtest Presentation of Compensation Management Course by Herfina Puspawardani

1. Upah Minimum Regional (UMR)
in case of PT Freeport
Herfina Puspawardani
19009079

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.

8. THANK YOU!