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Jakarta Post

High wages still top concern for Japanese companies in Indonesia: Survey

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Mon, February 17, 2020   /  03:12 pm
The Jakarta Post Image
Workers of PT Astra Daihatsu Motor (ADM), a Japanese joint venture in Indonesia, install parts in a car in the company’s assembly plant in Karawang, West Java, in this file photo.(Antara Photo/Rivan Awal Lingga)

The steep increase in the minimum regional wage remains a major concern for Japanese companies doing business in Indonesia, according to a new survey conducted by the Japan External Trade Organization (JETRO). The survey showed five main problems in investing in Indonesia including a sharp increase in wages (84 percent), difficulty in local procurement of raw materials (54.9 percent), the tax burden (55.4 percent), employee quality (55 percent) and quality control problems (53.6 percent). The polling was part of JETRO’s survey of Japanese companies’ perception of the business climate in 20 countries in Asia and Oceania, including in Indonesia. The survey compiled answers from 13,458 respondents from Aug. 26 to Sept. 24, 2019. In Indonesia, 614 companies took part in the survey. “The human-resource-related issues are the main problems, such as those related to w...