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The Jakarta Post
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Government ‘must end cheap wages policy’ to compete globally

  • Ridwan Max Sijabat

    The Jakarta Post

| Tue, December 11 2012 | 11:26 am
Government ‘must end cheap wages policy’ to compete globally

While executives have complained that recently approved wage hikes smell of populism and capitulation to unions, several economists say that the increases reflect a needed update of the cheap labor policy of previous decades.

Cheap wages are no longer suitable with global standards, according to economist Payaman Simanjuntak, a professor at Krisnadwipayana University in Jakarta.



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