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Jakarta Post

Indonesia not ready for productivity-based wage: Airlangga

  • Adrian Wail Akhlas, Esther Samboh and Nezar Patria

    The Jakarta Post

Jakarta   /   Thu, February 27 2020   /  12:24 am
Labor’s voice: Workers demonstrate in front of the Yogyakarta Legislative Council on Jl. Malioboro, Yogyakarta, on Wednesday. The protesters called for the rejection of the omnibus bill on job creation, which they said would negatively affect their welfare.(Antara/Hendra Nurdiyansyah)(Antara/Hendra Nurdiyansyah)

Labor’s voice: Workers demonstrate in front of the Yogyakarta Legislative Council on Jl. Malioboro, Yogyakarta, on Wednesday. The protesters called for the rejection of the omnibus bill on job creation, which they said would negatively affect their welfare.(Antara/Hendra Nurdiyansyah)Indonesia will not “yet” implement a productivity-based minimum wage despite a recent study suggesting that the country’s manufacturing productivity is lower than that of its Southeast Asian peers.Coordinating Economic Minister Airlangga Hartarto said the country would need to create jobs for 7 million unemployed Indonesians and that investment in labor-intensive industries would be able to provide them.“We are still implementing the provincial and regional minimum wage, the increase of which is […] not based on productivity,” said Airlangga during an interview with The Jakarta Post o...