TEMPO.CO, Bekasi - Purnomo Narmiadi, chairman of the Bekasi Branch of the Indonesian Employers Association (Apindo), said that at least five companies in the area have started to reduce the number of its employees because of the new Rp. 2.9 million minimum wage (UMK) is considered to be burdensome.
"Companies don't want to be burdened by employee salaries," said Purnomo on Friday, December 12, 2014. Companies plan to reduce around 100 to 300 employees. Most of the companies are in the snack industry.
More companies may soon follow and they will also replace employees with machines. "Like oil factories. They prefer using machines," said Purnomo.
Purnomo said that the majority of the companies refuse to comply with the new UMK regulation, especially garment companies. Meanwhile, some companies choose to make an agreement with their workers.
Bekasi Mayor Rahmat Effendi said that he will not revise the UMK.
ADI WARSONO