High wages force tens of businesses to move to provinces outside Jakarta | Kontan 

(The Insider Stories) — High labor costs are forcing 41 firms to move their businesses elsewhere, Kontan daily reports Monday.

Sarman Simanjorang, the vice chairman of the Jakarta chapter of the chamber of commerce, said the 41 firms are preparing new plants in West, Central, and East Java provinces. The three provinces have a minimum wage of 1 million rupiah ($103) a month, less than half than that of Jakarta province of IDR2.2 million.

Previously the Indonesian Employers Association, or Apindo, said as many as 90 companies are preparing to move out of Jakarta following the 44% minimum wage hike this year. Jakarta Governor Joko Widodo said last week that the capital city is more suitable for services and commerce, not labor-intensive industry.

Full story : http://nasional.kontan.co.id/news/puluhan-pabrik-siap-cabut-dari-jakarta

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