Economics
Generous Payouts for Fired Workers in Indonesia May Soon End
- Businesses say labor rules curb investment, economic output
- President Jokowi vows to change the labor laws this year
Photographer: Dimas Ardian/Bloomberg
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When Harijanto needed more workers to make Nike and Adidas sneakers at one of its factories outside the Indonesian capital Jakarta, he couldn’t make the numbers work.
Faced with one of world’s most generous payout packages for fired workers and having to navigate a complex minimum wage system, Harijanto said he couldn’t employ the extra people to expand his business.