Anton warns of problems over minimum wages

Anton warns of problems over minimum wages

JAKARTA (JP): Leading businessman Anton J. Supit warned on
Monday of possible industrial disputes when hikes in official
minimum wages come into force next month.

While many workers might feel that the increase was
insufficient, some employers might also find it hard to increase
the wages, Anton, who sits in the National Business Development
Council (DPUN), told The Jakarta Post.

He cautioned that worker unrest would damage Indonesia's image
overseas. "One of the concerns of foreign investors is the
inclination of our laborers toward anarchy," he said.

Anton proposed the establishment of a joint committee --
comprising the council, the Indonesian Chamber of Commerce and
Industry (KADIN) and labor organizations -- to address the
problem.

The council was established in December to advise President
Abdurrahman Wahid on microeconomic matters.

Official minimum wages will increase between 15 and 55 percent
beginning April 1. In Jakarta, the monthly minimum wage will
increase 24 percent to Rp 286,000 (US$38) from Rp 231,000.

Anton said the wage increase could force some companies to lay
off more workers.

He likened the current situation facing many companies as a
sinking ship. "We have to save the ship first because if the
company is forced to close down, workers will also lose."

Anton, who is also a member of the Indonesian Exporters'
Association (GPEI) said exports had hardly improved.

"Logically, if there is a depreciation of the rupiah's value,
exports should increase, but they have not," he said.

Exporters faced two major problems: the security situation
emanating from the political crisis and trade financing, he said.

While addressing the security situation, the government should
also forge ahead with its program to restructure the banking
sector, because one without the other would be useless, he said.

Citing the garment and footwear sectors, Anton said the
ability of Indonesian exporters to deliver was crucial,
especially given the nature of the fashion industry.

"If they miss the season, then they cannot sell." he said,
stressing the importance of the government to resolve the
security situation in the country.

Indonesian exporters also often lost momentum because they did
not get the necessary financing on time, he said.

If they received extra orders, there would be a problem of who
should finance them, he added.

Anton said now was the right time for Indonesia to
reinvigorate exports, especially following President
Abdurrahman's extensive overseas travels.

"This is the right momentum because we have gained the
confidence (from abroad)," Anton said. (10)