Employers awaiting formulation of labor wage hike

Jakarta (ANTARA News) - Employers in Indonesias labor intensive industrial sector are awaiting the formulation of labor wage hike which is to be shortly announced by the government.

The President Director of PT Adis Dimension Footwear, Harijanto, said employers need to know the extent to which labors wages will increase since they have to decide about their investment in Indonesia.

"Employers need certainty. It does not mean they do not want salaries to be raised. They will accept if salaries are increased but such a hike should be predictable," Harijanto said while launching a labor intensive investment program in West Balaraja, Tangerang, Banten, on Monday.

Harijanto hoped the increase in salary, whose quantum was still to be formulated by the government, would be such that it creates more opportunities for workers.

He said that the minimum wage rate norms would act as a safety net for workers.

Manpower Minister Hanif Dhakiri said the government was still in the process of finalizing the workers salary increase formula.

"Basically, we need to encourage salary increases for two reasons. First, the certainty that salary is to be raised every year and, second, the certainty that employers will receive notification regarding the rise," he said.

President Joko Widodo has acknowledged that wage is one issue that employers in the labor intensive industries must face.