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Jakarta Post

Industry Ministry pushes for wage hike exception

  • Amahl S. Azwar and Hans David Tampubolon

    The Jakarta Post

Jakarta   /   Tue, December 18 2012   /  10:08 am

Getting on with the job: Coordinating Economic Minister Hatta Rajasa (second left) chairs a job creation coordination meeting, attended by Finance Minister Agus Martowardojo (left), in Jakarta on Monday. The government hopes to create 2.5 million new jobs in 2013. Antara/Andika WahyuIn an attempt to meet the country’s expected industrial growth by the end of 2013, the Industry Ministry has recommended that labor-intensive firms, including textile, garment and shoe manufacturers, be exempted from adopting a new minimum wage in the new year.

Industry Minister MS Hidayat said on Monday that his office was “upbeat” about the country’s non-oil and gas industry growing to around 6.8 percent to 7.1 percent next year, despite the challenges of poor infrastructure and the high cost of investment.

However, he said the estimated growth might not be realized if labor-intensive ...