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Wage hike puts several textile jobs at stake in Jakarta
Nov '12
The Indonesia Textile Association (API) has sounded caution that around 100,000 jobs are at stake as several textile firms in Jakarta are considering implementation of cost-cutting measures to shoulder the 44 percent hike in minimum wages.
In spite of severe pressure from the city’s manufacturing and textile enterprises to keep the wage hike to a minimum, Jakarta Governor Joko Widodo nodded to affect a 44 percent hike in the minimum wage, taking it to Rp 2.2 million or US$ 229 per month.
Being labour-intensive, the textile sector would be the worst impacted by wage hike, according to API.
Speaking at a press meet, API secretary-general Ernovian G. Ismy said they have learnt from the overseas textile firms in Jakarta that they are considering to cut about 100,000 jobs.
The secretary-general forewarned that increased wages may affect the competitiveness of the Indonesian textile industry. 

Fibre2fashion News Desk - India

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