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Jakarta Post

Businesses expected to stay in W. Java, despite wage increase

  • Arya Dipa

    The Jakarta Post

Bandung   /   Fri, December 14 2012   /  07:36 am

The West Java administration is hoping that garment industry executives will not relocate their businesses to other provinces after the local minimum wage goes up in 2013.

The administration’s comments apparently contradicted Indonesian Textile Association chairman Ade Sudrajat, who said that at least 50 garment companies in West Java would likely relocate to Central Java due to a minimum wage for 2013 that was described as “too high” and not competitive.

The companies planning to move are located in areas that have approved significant increases, such as Bekasi, which will raise its monthly minimum wage from Rp 1,470,000 (US$ 152) to Rp 2.1 million for 2013; Bogor municipality, from Rp 1,174,200 to Rp 2,002,000; Bogor regency, from Rp 1,269,320 to Rp 2,002,000; and Karawang regency, from Rp 1,269,227 to Rp 2 million.

Ferry Sofwan Arif, the head of the West J...