No issues have attracted as much attention for the last few days as outsourcing and the minimum wage. Rallies by workers for the elimination of outsourcing have crippled production.
Factories are closed as their workers are flocking in the streets. The saga continues as business owners and investors send clear messages that they will withdraw their business from the country if this issue remains unresolved. The government is stuck in the middle. It is obvious the situation will put the economy at risk.
In response, the Manpower and Transmigration Ministry issued a decree allowing outsourcing of non-core jobs only. Few days later, the Jakarta minimum wage was set at Rp 2.2 million (US$230). The decision has been made, therefore the issue is settled, no? Not so fast. Business owners are ready to request deferral for the payment of the new wage.
This back and forth si...