Minister: Wage Increase Must be Rational

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  • TEMPO.CO, Jakarta - Minister of Manpower and Transmigration Muhaimin Iskandar, urged laborers to request for a considerably rational wage increase to prevent companies from going bankrupt. The Minister asserted that the 2014 minimum wage should be adjusted in accordance with each company's financial capability.

    "We are not refusing the laborers' demand. However, there are stages that [laborers' must be aware of so the companies won't go bankrupt," Muhaimin said on Thursday, October 31.

    He added that wage increase should be accompanied by an improvement in human resources quality, which will lead to improvements of productivity.

    Therefore, Muhaimin stated that there has to be a discussion between businesses and laborers.

    "The laborers shouldn't be lied to, but businesses should also ask for laborers' cooperation to look out for each other for the good of the company," he said.