{
    "success": true,
    "data": {
        "id": 1676771,
        "msgid": "business-leader-reveals-indonesian-workers-productivity-lags-behind-wage-increases-1776160266",
        "date": "2026-04-14 15:55:00",
        "title": "Business Leader Reveals Indonesian Workers' Productivity Lags Behind Wage Increases",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesian business leaders have raised concerns over the country's declining labour productivity, particularly in the manufacturing sector, which contributes only 19% to the economy\u2014the lowest in ASEAN\u2014resulting in annual productivity growth of just 2%. This lags significantly behind the 7-8% yearly increases in minimum wages, creating a gap that burdens workers, squeezes employers, and drives investors away from labour-intensive industries. The Apindo labour chair hopes the new Employment Bill will address these issues to boost productivity and welfare.",
        "content": "<p>Jakarta, CNBC Indonesia - Business leaders have revealed that\nIndonesia\u2019s productivity is becoming increasingly concerning, as the\nfigures are deemed to be getting lower.<\/p>\n<p>Apindo\u2019s Head of Labour Affairs, Bob Azam, stated that the suboptimal\nfunctioning of Indonesia\u2019s manufacturing sector is leading to low\nproductivity.<\/p>\n<p>\u201cOur manufacturing sector\u2019s contribution is among the lowest in\nASEAN; we, who actually have high manufacturing potential, only at\n19%.<\/p>\n<p>As a result, manufacturing as the engine of job creation is not\nfunctioning optimally. So our productivity has not budged over time; now\nit\u2019s only a 2% annual increase,\u201d said Bob Azam in his presentation\nduring a hearing with Commission IX of the Indonesian House of\nRepresentatives (DPR RI) regarding the Employment Bill (RUU\nKetenagakerjaan), on Tuesday (14\/4\/2026).<\/p>\n<p>On the other hand, the average minimum wage rises by around 7% to 8%\nper year. Consequently, there is a gap between productivity and\nwages.<\/p>\n<p>\u201cOn the other hand, the minimum wage rises by around 7%-8% per year.\nSo there is a gap between productivity and wages. We are not against\nminimum wage increases; go ahead.<\/p>\n<p>We also support improving welfare. But after 10 years of average\nwages at 7%-8%, our workers are still not prosperous. That means\nsomething is wrong,\u201d he continued.<\/p>\n<p>This situation makes workers and employers seemingly squeezed\ntogether by the existing conditions. Meanwhile, investors are also\nstarting to leave Indonesia\u2019s manufacturing sector.<\/p>\n<p>\u201cAs a result, workers are not prosperous, employers are squeezed from\nall sides, and investors in the manufacturing sector are leaving\nIndonesia, especially in labour-intensive industries,\u201d he explained.<\/p>\n<p>He hopes that the new labour law can resolve these problems in\nIndonesia, particularly the increasingly low productivity issue.<\/p>\n<p>\u201cWe hope that the law formed later will not only cover labour issues\nbut also solve the problems,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/business-leader-reveals-indonesian-workers-productivity-lags-behind-wage-increases-1776160266",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}