Home / Knowledge / News / Apparel/Garments / Wage hike will harm Indonesian apparel sector: API
Wage hike will harm Indonesian apparel sector: API
24
Nov '12
The recent announcement of increase in wages by the Indonesian Government will mar the competitiveness of the country’s garment sector, according to the Indonesian Textile Association (API).
 
The association said that the wage hike would result in increased imports of garments as local manufacturers would lose their competitiveness.
 
API estimates Indonesia would import clothing items worth Rp 55 trillion this year and it forecasts the value to grow by 36 percent year-on-year to Rp 75 trillion next year, owing to the hike in cost of labour.
 
When the new wage structure comes into effect, the minimum wage in Jakarta would increase by 44 percent over the existing wage to Rp 2.2 million per month, which is Rp 220,000 more than the minimum wage sought by the Indonesian Employers’ Association Apindo.
 
Earlier, the minimum wage in the West Javanese city of Bekasi was raised to Rp 2.1 million per month from Rp 1.4 million.
 
Both Jakarta and Bekasi have several apparel units, employing millions of people.
 
According to API, average domestic apparel consumption is likely to rise this year to about 7 kg per person from last year’s 6.5 kg. However, it expects the total sales value of apparels to remain flat at Rp 95 trillion, pointing to a decline in price of garments.
 

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 30th Apr 2016

Britain keen on new ventures in textiles and garment

British High Commissioner to India Sir Dominic Asquith, has said that ...

Apparel/Garments | On 30th Apr 2016

‘India’s apparel sector needs to revisit policies’

Apparel Export Promotion Council (AEPC)’s Additional Secretary...

Textiles | On 30th Apr 2016

Bangladesh spinners wary of another gas price hike

Bangladeshi cotton spinners have expressed concern that they may lose ...

Interviews View All

Mr. Madhu Kapoor
Apparel & Leather Technics Pvt. Ltd.

Discuss the applications of various machines in textile industry. How do...

Wendy Wen
Messe Frankfurt (Hong Kong)

Can you elaborate on the role of sustainability in textiles? How is China...

Pinkesh Jain
Everflow Petrofils Ltd

What are the latest technological innovations in the spinning industry?...

Eric Scholler
Groz-Beckert

<b><i>The Indian market has huge potential in technical textiles, and by...

Paige Mullis
Glen Raven Inc

<i><b>Paige Mullis</b> discusses the expansion plans of Glen Raven Inc in...

Daniel Dwight
Cooley Group

An international executive with significant experience leading high-tech...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


<%@ language="VBScript" %>
feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search