"Do not follow the paradigm that a low wage will attract investment. That is true and I do not agree with it," he said in his directives when opening the Forum of Consolidation of Boards of Wage Policy Makers from across Indonesia at his office here on Thursday.
He said there were a lot of things that could be done to attract investment apart from pressing down workers` wage such as through improvement of infrastructure, accelerating licensing and improvement of business climate.
He said the Boards must not think that the wage must be made low to attract investment when giving advises or considerations. This paradigm must be changed, he said.
"The focus must not only be put on wage," he said.
The vice president said that a minimum wage is a crucial problem that needs attention.
Manpower minister Muhaimin Iskandar meanwhile said that the minimum wage in Indonesia is still set based upon the standard of safety net.
"Some of the wages are still below the need for a proper living. Therefore we have been raising them so that they will reach above the minimum standard," he said after the opening of the gathering.
He said the principle of setting a minimum standard is to make the wage not to be too low.
The Boards of Wage Policy Makers are tasked with giving views and formulating a wage policy that would be implemented by the government and developing a national wage system.
It is established at national, provincial and district/city levels. The Boards have now been established in the country`s 33 provinces and 181 districts/cities.
The task of the Boards in provinces and districts/cities is giving recommendations to governors and district heads or city mayors regarding minimum wage standards in their respective regions.
The Forum of Consolidation of Boards of Wage Policy Makers was attended by government officials, business representatives, workers and experts. (*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
