Association of Indonesian Businesspeople (Apindo) chairman Sofyan Wanandi said Thursday the existing labor law had discouraged investment in labor-intensive industries.
"We in Apindo have tried to help attract investment in the labor-intensive industry. But labor-intensive industry do not come because of this law," Sofyan said during Apindo's 58th anniversary.
He further said that the government must take the initiative to amend the labor law, which had created labor rigidity in the country.
Otherwise, he said, Indonesia will lose out in the era of free trade.
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