Indonesian workers demand 50% minimum wage rise

Reading Time: 1 minute

indo protestAround 7,000 Indonesian workers took to the streets of the capital Jakarta on October 17, demanding that the government raise wages and adding to fears that labour costs in Southeast Asia’s biggest economy are becoming uncompetitive.

Members of the country’s largest labour unions marched through the center of Jakarta to the presidential palace to press their case for a 50 per cent increase in the minimum wages and improved social welfare. The demands add to pressure on President Susilo Bambang Yudhoyono to improve the lot of low-income workers ahead of next year’s parliamentary and presidential elections.

His government has said it would announce an inflation-linked basket to set minimum wages, but manufacturers worry that rising costs are already threatening to make Indonesian products less competitive.

The government-set minimum wage rose 44 per cent last year in greater Jakarta, where the bulk of the country’s factories are based. The minimum wage in greater Jakarta is on average 1.9 million rupiah (around $170) a month.

Economists say that they are concerned that the government will buckle to populist demands to win votes and shy away from any serious economic reform to help counter a slowing growth.

Union leaders said they planned more protests in the next few weeks, including a national strike in late October.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

Around 7,000 Indonesian workers took to the streets of the capital Jakarta on October 17, demanding that the government raise wages and adding to fears that labour costs in Southeast Asia’s biggest economy are becoming uncompetitive.

Reading Time: 1 minute

indo protestAround 7,000 Indonesian workers took to the streets of the capital Jakarta on October 17, demanding that the government raise wages and adding to fears that labour costs in Southeast Asia’s biggest economy are becoming uncompetitive.

Members of the country’s largest labour unions marched through the center of Jakarta to the presidential palace to press their case for a 50 per cent increase in the minimum wages and improved social welfare. The demands add to pressure on President Susilo Bambang Yudhoyono to improve the lot of low-income workers ahead of next year’s parliamentary and presidential elections.

His government has said it would announce an inflation-linked basket to set minimum wages, but manufacturers worry that rising costs are already threatening to make Indonesian products less competitive.

The government-set minimum wage rose 44 per cent last year in greater Jakarta, where the bulk of the country’s factories are based. The minimum wage in greater Jakarta is on average 1.9 million rupiah (around $170) a month.

Economists say that they are concerned that the government will buckle to populist demands to win votes and shy away from any serious economic reform to help counter a slowing growth.

Union leaders said they planned more protests in the next few weeks, including a national strike in late October.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid