Indonesian Employers Seek to Curb Wage Gains as Costs Climb
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Indonesia’s main employer group is seeking to cap wage gains well below what authorities and unions have sought in recent years, raising the risk of labor disputes that would test the country’s next leader.
The association, known as Apindo, wants to limit increases in the minimum wage next year to 1 or 2 percentage points above inflation, as a new social security program will add to costs for employers, Chairman Sofjan Wanandi said in an interview yesterday. The government said last year it planned to set a cap of 10 percentage points above price gains, and the minimum pay in the capital rose 11 percent this year.