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Jakarta Post

Labor-intensive industry gets wage freeze

  • Bagus BT Saragih

    The Jakarta Post

Jakarta   /   Wed, November 28 2012   /  09:59 am

Bowing to pressure from businesspeople, the government has decided to allow labor-intensive firms including textile, garment and shoe manufacturers, to seek a delay in raising the minimum wages for their workers.

During a limited Cabinet meeting on Tuesday, President Susilo Bambang Yudhoyono asked related ministers to provide a mechanism for companies to enjoy a suspension in adopting the new minimum wages.

“If you feel burdened by the new minimum wages, you can lodge complaints with your respective provincial administrations who will audit your firms’ financial performances. An audit is required as part of the process for the suspension,” Manpower and Transmigration Minister Muhaimin Iskandar said.

Industry Minister MS Hidayat added that the government had prioritized companies in three sectors to enjoy the leniency.

“Labor-intensive companies, which ...