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Jakarta Post

Transparency key to industrial harmony

  • Ridwan Max Sijabat

    The Jakarta Post

  /   Tue, December 11 2012   /  11:21 am

Suryadi Sasmita, the secretary-general of the Indonesian Employers Association (Apindo) and the owner of a garment factory and retail shops in Jakarta and surrounding towns, said he was among the employers considering a request to suspend the increase in his workers’ wages.

While production, transportation and security costs have risen by 75 percent, the new wage hike could raise labor costs by 30 percent, he said. To stay competitive increasing prices is not an option.

The Bogor regency recently decided on a wage rise of 70 percent to Rp 2 million (US$207.68).

The Jakarta administration increased the monthly minimum wage by 44 percent to Rp 2.2 million for 2013. In Greater Jakarta, officials in Bekasi, West Java, have increased the minimum wage by 54.7 percent to Rp 2.1 million. With such increases, Suryadi reckons employers will suffer an annual loss of at lea...