Wage rise could mean move away from Indonesia - footwearbiz: Leading s

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Wage rise could mean move away from Indonesia

07/11/2013
The Indonesian employers’ association Apindo has warned that the country is in danger of losing manufacturing jobs to lower-cost locations in the wake of a rise in wage rates there and widespread industrial protests as workers demand even higher increases.

Capital city Jakarta has the highest minimum wage. The rate there will increase to $211 per month from the start of 2014. This compares to just over $130 per month in 2012 and $190 per month in 2013.

Apindo chairman, Sofjan Wanandi, told local media at the start of November that “investors” (overseas owners of manufacturing operations, including footwear companies) have already threatened to move production to other Asian countries.


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