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28 Nov, 2012

Jakarta faces massive layoffs following salary hike: The Jakarta Post

The Indonesian Employers’ Association (Apindo) has said that at least 10,000 workers could lose their jobs when the Jakarta administration implements the new minimum wage at Rp 2.2 million (US$228) next year.

Apindo wages and social security division head Hariyadi Sukamdani said Tuesday that the 44 percent increase would hit employers hard.

“Until now, 100 garment companies plan to shut down their businesses due to the raise,” he told tempo.co. He added that shoe manufacturers had also considered the same action.

Labor-intensive companies, owned by Korean and Japanese businesses, located at Kawasan Berikat Nusantara in North Jakarta have threatened about the redundancies if the new wage is implemented.

Read the rest: Jakarta faces massive layoffs following salary hike, says Apindo | The Jakarta Post.