New Jakarta governor tells manufacturers to pay - sportstextiles: Lea SportsTextiles

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New Jakarta governor tells manufacturers to pay up or ship out

21/11/2014
Sports brands with manufacturing partners in and around Jakarta face higher labour costs from the start of 2015 after newly sworn-in governor Basuki Ahok Tjahaja Purnama increased the monthly minimum wage by 12.5% to $222.

On making the announcement, Mr Ahok told local media in Indonesia: “I will not tolerate it if any company does not comply. There will be no postponements.”

Technically, companies in Indonesia are permitted to apply for a postponement of higher wage rates if they are in financial difficulty. Mr Ahok encouraged any Jakarta-based companies thinking of applying for a concession not to waste their time, but to relocate to another region of Indonesia instead. “We will turn their locations into commercial areas,” he warned.


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