INDONESIAN GARMENT MANUFACTURERS RELOCATING DUE TO RISING MINIMUM WAGES
August 1st, 2014
INDONESIAN garment manufacturers are moving to the Central Java province to capitalise on lower minimum wage costs, according to a senior industry figure. Ade Sudrajat, chairman of the Indonesian Textile Association (API), said the industry’s established manufacturing hub in West Java, greater Jakarta and Banten province (all in western Java) had become less competitive as unions have won repeated inflation-busting wage increases. The minimum wage in Jakarta is now Indonesian Rupiah IDR2.4 million (USD205) per month, up from IDR1.27 million (USD108) in 2011. ...
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