Thu, 19 May 2011

Low Wages Not the Way to Attract Foreign Investment: Boediono

From: The Jakarta Globe
By Arientha Primanita

Indonesian Vice President Boediono on Thursday said it was not necessary to push down wages to attract foreign investment.

“There are many things that can push investment without pressing the workers’ wage - such as improvements in infrastructure and creating a good investment climate - that can be worked on,” he said after a meeting with the national wage council and Manpower and Transmigration Minister Muhaimin Iskandar.

“The wage council must discuss the wage towards that.”

The 250-member national wage council from 33 provinces met to discuss minimum wages.

“The wage councils do not make the decision [on the minimum wage], but their suggestions are very important so they must make the suggestions to governors or head of regions with good quality inputs,” Boediono said.

The wage council is a tripartite from government and business sector representatives, and workers.