Anton warns of problems over minimum wages<\/p>\n
JAKARTA (JP): Leading businessman Anton J. Supit warned on
\nMonday of possible industrial disputes when hikes in official
\nminimum wages come into force next month.<\/p>\n
While many workers might feel that the increase was
\ninsufficient, some employers might also find it hard to increase
\nthe wages, Anton, who sits in the National Business Development
\nCouncil (DPUN), told The Jakarta Post.<\/p>\n
He cautioned that worker unrest would damage Indonesia's image
\noverseas. "One of the concerns of foreign investors is the
\ninclination of our laborers toward anarchy," he said.<\/p>\n
Anton proposed the establishment of a joint committee --
\ncomprising the council, the Indonesian Chamber of Commerce and
\nIndustry (KADIN) and labor organizations -- to address the
\nproblem.<\/p>\n
The council was established in December to advise President
\nAbdurrahman Wahid on microeconomic matters.<\/p>\n
Official minimum wages will increase between 15 and 55 percent
\nbeginning April 1. In Jakarta, the monthly minimum wage will
\nincrease 24 percent to Rp 286,000 (US$38) from Rp 231,000.<\/p>\n
Anton said the wage increase could force some companies to lay
\noff more workers.<\/p>\n
He likened the current situation facing many companies as a
\nsinking ship. "We have to save the ship first because if the
\ncompany is forced to close down, workers will also lose."<\/p>\n
Anton, who is also a member of the Indonesian Exporters'
\nAssociation (GPEI) said exports had hardly improved.<\/p>\n
"Logically, if there is a depreciation of the rupiah's value,
\nexports should increase, but they have not," he said.<\/p>\n
Exporters faced two major problems: the security situation
\nemanating from the political crisis and trade financing, he said.<\/p>\n
While addressing the security situation, the government should
\nalso forge ahead with its program to restructure the banking
\nsector, because one without the other would be useless, he said.<\/p>\n
Citing the garment and footwear sectors, Anton said the
\nability of Indonesian exporters to deliver was crucial,
\nespecially given the nature of the fashion industry.<\/p>\n
"If they miss the season, then they cannot sell." he said,
\nstressing the importance of the government to resolve the
\nsecurity situation in the country.<\/p>\n
Indonesian exporters also often lost momentum because they did
\nnot get the necessary financing on time, he said.<\/p>\n
If they received extra orders, there would be a problem of who
\nshould finance them, he added.<\/p>\n
Anton said now was the right time for Indonesia to
\nreinvigorate exports, especially following President
\nAbdurrahman's extensive overseas travels.<\/p>\n
"This is the right momentum because we have gained the
\nconfidence (from abroad)," Anton said. (10)<\/p>",
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