CENTRAL JAVA GOVERNOR. DECISION OF THE GOVERNOR OF CENTRAL JAVA NUMBER 560 / 50 of 2016

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CENTRAL JAVA GOVERNOR DECISION OF THE GOVERNOR OF CENTRAL JAVA NUMBER 560 / 50 of 2016 ON MINIMUM WAGES FOR 35 (THIRTY FIVE) DISTRICTS/CITIES IN THE PROVINCE OF CENTRAL JAVA GOVERNOR OF CENTRAL JAVA, Considering: a. that in order to carry out a function of wage protection for workers and the sustainable growth of corporate / business world and based on the recommendation of regents / mayors in Central Java and Wage Council of Central Java province, it is (then) deemed necessary to determine the amount of the minimum wages of the 35(Thirty Five) Districts / Cities in Central Java Province; In view of: 1. Law number 10 of 1950 on the establishment of the province of Central Java (Compilation of State Laws of 1950 pages 86-92); 2. Law Number 13 of 2003 on labor (State Gazette of the Republic of Indonesia of 2003 No. 39, State Gazette of the Republic of Indonesia Number 4279); 3. Law Number 23 of 2014 on Regional Government (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 regarding Regional Government (State Gazette of the Republic of Indonesia 2015 No. 58. Gazette of the Republic of Indonesia number 5679); 4. Government Regulation No. 78 of 2015 on wages (State Gazette of the Republic of Indonesia 2015 Number 237, Supplement to State Gazette of the Republic of Indonesia Number 5747; 5. The Central Java Provincial Regulation No. 6 of 2008 on the Organization and Work Procedure of the

Provincial Office of Central Java (Central Java Provincial Gazette 2008 No. 6 Series D Supplement to Central Java Provincial Gazette No. 12); 6. Regulation of the Minister of Manpower and Transmigration No. 7 of 2013 concerning the Minimum Wages (Official Gazette of the Republic of Indonesia of 2013 number 1239); 7. Regulation of the Minister of Manpower No. 21 of 2016 concerning the Living Needs (Official Gazette of the Republic of Indonesia of 2016 Number 948); 8. Regulation of Central Java Governor No. 65 of 2008 on the Description of Basic Tasks, Function and Administration of the Regional office of Manpower, Transmigration and Population of Central Java (Regional Gazette of Central Java Province in 2008 No. 65); 9. Central Java Governor Regulation No. 24 of 2009 on Procedures for Proposing Membership of the Central Java Provincial Wage Council (Central Java Provincial Gazette 2009 No. 24); 10. Regulation of Central Java Governor No. 65 of 2014 concerning the technical instructions for Living Needs Survey and Phasing Achievement of Living Needs (Regional Gazette of Central Java Province of 2014 No. 66); 11. Decision of Central Java Governor No. 560/3 of 2016 on the Establishment of the Central Java Provincial Wage Council for 2016-2018 term; Taking into account: Minutes of the Plenary Session of the Central Java Provincial Wage Council on Monday dated 14-11-2016; DECIDE to Enact: ONE: Minimum wages for 35 (thirty five) Districts / Cities in Central Java province in 2017, the list of which is to be found in the annex of this Governor decision. TWO: The said minimum wages mentioned in dictum ONE is the lowest monthly wage, consisting of a basic salary including fixed allowances.

THREE: FOUR: FIVE: SIX: SEVEN: EIGHT: NINE: The minimum wages apply only to the lowest level workers with a less than 1 (one) year of service The wages of workers with 1 (one) year or more of service shall be determined according to the agreement between workers or unions and employers in a bipartite manner, taking into account company s productivity and affordability. Employers who cannot afford the minimum wages as mentioned in the dictum ONE, may apply for the suspension of (application of their respective) inimum wage to the Governor of Central Java or a designated official in accordance with the statutory regulation, no less than 10 (ten) days prior to the effectiveness of this Decision. Employers who have already provided wages higher than the minimum wages mentioned in dictum ONE, are prohibited to reduce or decrease the amount of wages they have already provided. For companies who operates in several districts / cities are prohibited from paying their workers wages lower than the minimum wages in the respective district / city as mentioned in dictum ONE The implementation oversight of this decision is carried out by labor inspectors in their respective capacity. As from the time this Decision comes into force, the Central Java Governor Decision No. 560/66 2015 on November 20, 2015 on the minimum wages for 35 (Thirty-five) districts / cities in Central Java province in 2016, thus the governor decision number 560/46 of Central Java on the Central Java provincial minimum wages in 2017 is revoked and declared invalid. TEN: This Governor Decision comes into force on January 1, 2017 Enacted in Semarang dated 21 November 2016 JAVA GOVERNOR OF CENTRAL signed GANJAR PRANOWO

COPIES: This Governor decision is copied to: 1. The Minister of Home Affair of the Republic of Indonesia; 2. The Minister of Manpower of the Republic of Indonesia 3. Deputy Governor of Central Java. 4. The Central Java Provincial House Speaker; 5. The Central Java Provincial Secretary; 6. The Central Java Assistant Secretary; 7. The Heads of SKPD (Technical Unit Offices) of Central Java Province; 8. The Head of the Environment Office of Central Java province; 9. Regents / Mayors in Central Java; 10. The Chief of Industrial Relations Court of Semarang; 11. The Chairman of the Central Java Provincial Wage Council; 12. The Chairman of the Central Java Provincial Employers Association; 13. The Chairman of the Trade Unions No District/City Minimum Wage for 2017 1 Semarang City Rp 2,125,000 2 Demak District Rp 1,900,000 3 Kendal District Rp 1,774,867 4 Semarang District Rp 1,745,000 5 Salatiga City Rp 1,596,844.87 6 Grobogan District Rp 1,435,000 7 Blora District Rp 1,438,100 8 Kudus District Rp 1,740,900 9 Jepara District Rp 1,600,000 10 Pati District Rp 1,420,500 11 Rembang District Rp 1,408,000 12 Boyolali District Rp 1,519,289 13 Surakarta City Rp 1,534,985 14 Sukoharjo City Rp 1,513,000 15 Sragen District Rp 1,422,585,52 16 Karanganyar District Rp 1,560,000

No District/City Minimum Wage for 2017 17 Wonogiri District Rp 1,401,000 18 Klaten District Rp 1,528,500 19 Magelang City Rp 1,453,000 20 Magelang District Rp 1,570,000 21 Purworejo District Rp 1,445,000 22 Temanggung District Rp 1,431,500 23 Wonosobo District Rp 1,457,100 24 Kebumen District Rp 1,433,900 25 District Banyumas Rp 1,461,400 26 Cilacap District Rp 1,693,689 27 Banjarnegara District Rp 1,370,000 28 Purbalingga District Rp 1,522,500 29 Batang District Rp 1,603,000 30 Pekalongan City Rp 1,623,750 31 Pekalongan District Rp 1,583,697.50 32 Pemalang District Rp 1,460,000 33 Tegal City Rp 1,499,500 34 Tegal District Rp 1,487,000 35 Brebes District Rp 1,418,100 JAVA GOVERNOR OF CENTRAL Signed GANJAR PRANOWO