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Wage hike puts several textile jobs at stake in Jakarta
29 Nov '12
1 min read
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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