TEMPO.CO, Jakarta - West Java Governor Ridwan Kamil admitted that more than 100 industries in his region have moved to other regions because of wage issues.
“[Company's bankruptcy is caused by the inability of labor-intensive industry with respect to wage aspect in West Java, which is not competitive," said Ridwan Kamil in Bandung on Thursday, November 28, 2019.
He claimed that such condition was the main reason for him to issue the recent minimum wage policy (UMK) through a Circular Letter.
"That is the reason behind the issuance of the circular. It's being communicated, and it should be understood that the UMK will still increase. But for those that cannot deal with that, we will find a fair way to fulfill the needs of laborers but also avoid having the industries moving away. This is a reality, many have chosen to relocate[ to other regions]," said Ridwan Kamil.
Meanwhile, Ade Afriandi from the Head of the West Java Manpower and Transmigration Office announced that the circular is not always exclusively about labors' wages. He also urged corporations to be more open to its workers and labors union.