8.03% Minimum Wage Rise May Affect Labor-Intensive Sectors: Apindo

Desi Angriani    •    18 Oktober 2018 20:00 WIB
indonesian economy (en)
8.03% Minimum Wage Rise May Affect Labor-Intensive Sectors: Apindo
Manpower Minister Hanif Dakhiri (Photo:Ant)

Jakarta: The Indonesian Entrepreneurs Association (Apindo) has warned that a 8.03 percent increase in the provinical minimum wage (UMP) for 2019 will affect labor-intensive sectors in the country.

"It may sacrifice labor-intensive sectors. We may experience the impacts," Apindo executive director Danang Girindrawardana told Medcom.id on Thursday.

"We need to review the regulations. We need to accommodate labor-intensive sectors," he added.

The increase was stipulated by the Circular Letter of the Manpower Ministry No.B.240/M.NAKER/PHI9SK-UPAH/X/2018. The decision was based on the Government Regulation No.78/2015 on Manpower Wage.

"Regional leaders should immediately implement the 2019 provincial minimum  wage.  They should follow the Government Regulation No.78," Manpower Minister Hanif Dakhiri told reporters on Tuesday.


(WAH)