Catherwood LibraryILR School

In Indonesia last year, minimum wage rose 44% in Jakarta and employers cut about 200,000 jobs in response. This year, the country?s main business association is seeking to limit increases in the minimum wage to only 1 or 2% above inflation. The association, Apindo, is seeking to minimize payroll reductions, with a looming increase in costs on the near horizon due to a new social security program. The country?s government had said that it was planning on capping minimum wage increases at 10%, but minimum pay in the capital city has already risen 11% this year and is likely to continue increasing. With a national election coming up, pay is sure to be a popular issue and will likely lend strength to the unions according to Standard & Poor?s in Singapore.