Delaying expansion plans flip flop industry
The Indonesian government policy in some parts of the provinces to increase the minimum wage, so flip flop industrial and textile industry and its products (TPT) delay expansion plans, while the labor absorption capacity less and less.
Some flip flop companies from Taiwan had to be delayed in the Sidoarjo region increased production plans, because there is no certainty to get on wages.
Ministry of Industry Textile Industrial Department and a number of long (Ramon Bangun) in Jakarta, told reporters yesterday, said: "For a production, can absorb 320 of the labor force."
In addition to want to delay investment outside the textile industry and its products and flip flop industry have put their orders to Cambodia, because wages in the country offer cheaper than Indonesia.
"Wages in Cambodia is more expensive than our country, but their capacity is lower than in China. Because domestic provinces raised the minimum wage by 40%, resulting in flip flop industry and the textile industry and its products industry is not competitive, and compared to other Asian backward country, "he said predicament.
He claimed that a number of interested investors from foreign countries to shift their production bases from China to Indonesia.
"Because of the wage increase, investors will shift their investment to Vietnam and Cambodia," he added.
said it had to reduce the number of labor force in Jakarta some labor-intensive business companies, and to consider the labor force located in the province and eastern claw claw province factory.
Provinces increase the minimum wage so that domestic areas such as Jakarta full of labor, leading to other parts of the labor crisis will occur, because it is cheaper wages. Jakarta above situation resulting influx of many of the unemployed, as many labor-intensive industries to reduce the number of labor force.
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